Question :
41) In 2008, the nominal minimum wage rate was $7.25 : 1228283
41) In 2008, the nominal minimum wage rate was $7.25 an hour and the CPI was 200. The real minimum wage rate in 2008 was
A) $3.63 an hour.
B) $14.50 an hour.
C) $1450 an hour.
D) $26.32 an hour.
E) $7.25 an hour.
42) In 2012, the nominal wage rate for unionized carpenters was $37.50 and the CPI was 204. Calculate the real wage rate for this group of workers.
A) $37.50
B) $47.09
C) $5.44
D) $18.38
E) $1.84
43) Suppose Mack’s wage was $7.00 an hour in 2001 and was $12.00 per hour in 2012. The CPI was 94 in 2001 and 201 in 2012. The 2001 wage in terms of 2012 dollars is
A) $14.97.
B) $14.07.
C) $3.48.
D) $13.16.
E) $7.00.
44) 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 wage has increased but by a smaller percentage than your nominal wage.
B) Your nominal wage has increased but your real wage has declined.
C) Your real wage rate has increased by a larger percentage than your nominal wage.
D) Your real and nominal wages have each increased by the same percentage.
E) Your nominal wage has increased but your real wage has not changed.
45) If your real income falls during a period of inflation, then your nominal income might have
A) increased more rapidly than the price level.
B) increased at the same rate as the price level.
C) increased more slowly than the price level.
D) decreased more slowly than the price level.
E) More information is needed to determine if your nominal income increased more slowly, more rapidly, or at the same rate as the price level.
46) If you get an 8 percent increase in your nominal income, your real income
A) definitely increases.
B) increases only if the inflation rate is more than 8 percent.
C) increases only if the inflation rate is equal to 8 percent.
D) increases only if the inflation rate is less than 8 percent.
E) increases if the inflation rate is more than or equal to 8 percent.
47) If we look at the nominal versus real wage rates paid to Presidents over time, we find that
A) George Washington was paid a higher real wage rate than Bill Clinton.
B) George W. Bush is the highest paid according to real wage rates.
C) the real wage rate has steadily increased to $400,000 per year.
D) the nominal wage has increased and decreased at different times because of inflation.
E) George W. Bush’s nominal wage is about equal to the average nominal wage paid all presidents.
48) The percentage return on a loan expressed in terms of goods and services is the
A) nominal wage rate.
B) real interest rate.
C) real wage rate.
D) nominal interest rate.
E) CPI interest rate.
49) The real interest rate equals the
A) nominal interest rate – inflation rate.
B) nominal interest rate + inflation rate.
C) (nominal interest rate ÷ inflation rate).
D) inflation rate – nominal interest rate.
E) (nominal interest rate + inflation rate) × 100.
50) To convert the nominal interest rate to the real interest rate, we
A) divide the nominal interest rate by the inflation rate.
B) multiply the nominal interest rate by the inflation rate.
C) subtract the inflation rate from the nominal interest rate.
D) add the inflation rate to the nominal interest rate.
E) subtract the nominal interest rate from the inflation rate and then multiply by 100.
