What does the real wage represent?
A) the quantity of goods and services a worker can purchase in exchange for performing work
B) the dollar value of the goods and services a worker can purchase in exchange for performing work
C) a worker's nominal wage minus taxes paid on wages
D) the actual amount of income a worker receives after deductions for such things as taxes and insurance

Question

What does the real wage represent?  
A) the quantity of goods and services a worker can purchase in exchange for performing work 
B) the dollar value of the goods and services a worker can purchase in exchange for performing work 
C) a worker's nominal wage minus taxes paid on wages 
D) the actual amount of income a worker receives after deductions for such things as taxes and insurance

Quizplus · Accepted Answer

The real wage represents the quantity of goods and services a worker can purchase in exchange for performing work, adjusted for inflation. It takes into consideration the purchasing power of their nominal wage.

What Does the Real Wage Represent