The Term real Wages Refers To

question 68

Multiple Choice

The term real wages refers to:

• A) a worker's hourly wage in dollars.
• B) the purchasing power of a worker's wage.
• C) the productivity of a worker's labor.
• D) the productivity of a worker's capital.

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Definitions:

Opportunity Cost

The loss of potential gain from other alternatives when one alternative is chosen.

Resources

Assets or inputs available for use in the production of goods or services, including natural, human, and capital resources.

Scarce

Describes a condition where resources, goods, or capabilities are limited in availability relative to the demand for them.

Wants

Desires for goods, services, or experiences that are not essential for survival but are deemed desirable based on individual preferences.