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Correct Answer: purchasing power of money

Real wage refers to the purchasing power or buying capacity of money wage. It is the amount of necessaries, comforts, and luxuries which the worker can command in return for his remuneration. Thus real wage is expressed in terms of goods and services. It is the amount of goods and services or benefits that a worker enjoys against of his job. The real wage is said to be high when a labourer obtains larger quantity of goods and services with his money income.