The nominal wage represents
A)the quantity of goods and services a worker can purchase in exchange for work time
B)the dollar value of the goods and services a worker can purchase in exchange for work time
C)real wages minus taxes paid on wages
D)the most accurate measure for comparing employee standard of living across time
E)real wages divided by the price level

Question

Quizplus · Accepted Answer

The nominal wage represents the dollar value of the goods and services a worker can purchase in exchange for work time. It does not take into account changes in the general price level or taxes paid on wages, which are factors that affect the purchasing power of the worker's wage. Therefore, B is the best choice.

The Nominal Wage Represents