Refer to Table 20-18. Looking at the table above, what is the rate of growth of real average hourly earnings from 2015 to 2016?

If pepperoni pizzas sell for $10 in Berkeley, California, and £10 in London, England, and the exchange rate is $1.35 = £1,

A) the law of one price has been violated. B) either the British government or the American government must be interfering with the market determination of the exchange rate. C) the value of the dollar versus the pound is likely to rise. D) there is no contradiction in the information given because pizza is not a tradeable good.

Refer to Figure 14.3. To maximize total wages paid to workers, the labor union will agree to wage rate:

A) W0. B) W1. C) W2. D) W3. E) none of the above