Real time hires Terry to repair its irrigation system on site on a certain date for $7,500, but Terry does not show up as agreed. Realtime hires Jerry to do the job for $7,000. Realtime may recover from Terry:a. nothing. b. compensatory damages. c. consequential damages. d. nominal damages. Solution a. nothing Explanation : Even though Real time hires Terry to repair its irrigation system on site on a certain date and Terry does not show up as agreed , Realtime may not recover any damages because Terry will no way be aware of the loss Realtime can incur for not showing up as agreed . Therefore Realtime cannot recover any damages ..

1. REAL WAGES AND PRODUCTIVITY—ARE WORKERS' PAYCHECKS KEEPING UP?
Over the long run, real wages grow at about the same pace as labor productivity. Go to the
Bureau of Labor Statistics Web site, www.bls.gov/lpc, and select Data & Tools (it is on the top
row) and locate "Top Picks". Select Productivity: Output Per Hour - Non-farm Business
Productivity to find current information on percentage changes in output per hour of all persons
in the business sector (labor productivity) and select Compensation: Employment Cost Index
(ECI) Civilian (Unadjusted) percentage changes in real compensation per hour.
Has real compensation per hour kept up with output per hour over the latest 3 years shown?
Answer the question and show your calculations.
Solution
From the Bureau of Labor Statistics we get the following tables:
Productivity: Output Per Hour - Non-farm Business:
And Compensation: Employment Cost Index (ECI) Civilian (Unadjusted) :
Now lets consider 2012-2014 for comparison of percentage change of output with percentage
change of wages as follows:
percentage change of output :
percentage change of wages:
Comparison:
From the above it is clear that real compensation per hour has kept up even more with output per
hour over the latest 3 years shown. Year Qtr1 Qtr2 Qtr3 Qtr4 2005 4.4 -0.4 3.0 0.2 2006
2.5 -0.3 -1.8 3.2 2007 0.4 2.6 4.6 1.8 2008 -3.9 4.0 1.0 -2.5 2009 3.2 7.9 6.0 4.8 2010
2.1 1.5 2.1 1.6 2011 -3.3 1.5 -0.9 3.0 2012 0.0 2.0 1.8 -2.3 2013 0.6 0.9 3.4 3.0 2014
-4.7 2.9 3.9 -2.1 2015 -3.1(R)