Your grandfather tells you that he earned $7,000/year in his first job in 1961. You earn $35,000/year in your first job in 2016. You know that average prices have risen steadily since 1961. You earn
A) more than 5 times as much as your grandfather in terms of real income.
B) less than 5 times as much as your grandfather in terms of real income.
C) less than 5 times as much as your grandfather in terms of nominal income.
D) 5 times as much as your grandfather in terms of real income.
B
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Which of the following is NOT the cause of an adverse productivity shock to the labor market?
A) a decline in the quantity of non-labor factors of production B) a drop in multifactor productivity C) a decrease in the labor force D) none of the above
Collective bargaining in the United States typically involves negotiations between
A) the government and management over the minimum wage law. B) the management of a company and the leaders of the union over the wages and fringe benefits to be offered. C) an individual and her boss over the appropriate salary level. D) union and nonunion employees regarding work rules.