The term real wages refers to: A) a worker's hourly wage in dollars. B) the purchasing power of a worker's wage. C) the productivity of a worker's labor. D) the productivity of a worker's capital.

Question

Quizplus · Accepted Answer

Real wages refer to the purchasing power of a worker's wage, which takes into account inflation and the cost of living. It is not simply the nominal hourly wage in dollars. Option A only refers to the nominal wage, while options C and D refer to productivity, which is not directly related to wages.

The Term real Wages Refers To