Real Wages Are Defined as

question 53

Multiple Choice

Real wages are defined as

• A)the average money wage for all workers.
• B)income after adjusting for productivity.
• C)the purchasing power of the wage earned per hour worked.
• D)inflation-adjusted wages.
• E)nominal wages plus the expected rate of inflation.

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Definitions:

Profitability

The ability of a business to earn a profit, which is the balance of revenue after accounting for all expenses, taxes, and costs.

Negotiated Price Approach

An approach to transfer pricing that allows managers of decentralized units to agree (negotiate) among themselves as to the transfer price.

Transfer Price

The price at which divisions of a company transact with each other, such as the sale of goods or services, often used for budgeting and tax purposes.

Decentralization

The process of distributing or dispersing functions, powers, people, or things away from a central location or authority.