Which term refers to the face value of pay?
A) direct compensation
B) nominal compensation
C) real compensation
D) market-competitive pay

Question

Quizplus · Accepted Answer

B)Cost-of-living adjustments (COLAs)represent periodic base pay increases that are founded on changes in prices as recorded by the consumer price index (CPI).In recent years,the typical COLA equaled approximately 2-3 percent annually.COLAs enable workers to maintain their purchasing power and standard of living by adjusting base pay for inflation.Real hourly compensation measures the purchasing power of a dollar,whereas nominal hourly compensation is the face value of a dollar.Increases in the costs of goods and services cause nominal pay to be less than real pay.

Which Term Refers to the Face Value of Pay