Multiple choice

What does the term “Real Wage” suggests?

  1. The real income of the worker

  2. The quantities of goods which the wages will actually buy

  3. The real expenditure of the workers

  4. The real deposit in the banks

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Real wage refers to the purchasing power of wages - what quantity of goods and services wages can actually buy, adjusted for inflation. Unlike nominal wage (money amount), real wage reflects actual living standards.

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