What does the nominal 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 real wages minus taxes paid on wages
D) a worker's real wages divided by the price level

Question

What does the nominal 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 real wages minus taxes paid on wages 
D) a worker's real wages divided by the price level

Quizplus · Accepted Answer

Nominal wage represents the dollar value of the goods and services a worker can purchase in exchange for performing work. It does not take into account the changes in purchasing power or inflation.

What Does the Nominal Wage Represent