Your wage this year is $15 per hour and the CPI is 178. Next year you get a raise to $17 and the CPI rises to 185. What has happened?
A) Your real and nominal wages have each increased by the same percentage.
B) Your real wage has increased but by a smaller percentage than your nominal wage.
C) Your nominal wage has increased but your real wage has declined.
D) Your nominal wage has increased but your real wage has not changed.
E) Your real wage rate has increased by a larger percentage than your nominal wage.
B
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Marginal private cost
A) is always zero if there is an external cost. B) equals the marginal social cost only if the marginal external cost is positive. C) is the cost of producing an additional unit of a good or service that is paid by the producer of that good or service. D) the cost of producing an additional unit of a good or service that falls on people other than the producer of that good or service. E) the cost of producing an additional unit of a good or service that is paid by the entire society.
The purchase by consumers of inventory converts that inventory from investment goods to consumption goods
Indicate whether the statement is true or false