The Wage Paid to Workers Measured in Terms of Real

question 58

Multiple Choice

The wage paid to workers measured in terms of real purchasing power is called the

• A) nominal wage.
• B) cost of living.
• C) minimum wage.
• D) real wage.
• E) effective wagE.

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Definitions:

Trade Credit

Debt arising from credit sales and recorded as an account receivable by the seller and as an account payable by the buyer.

Discounts

A reduction from the usual cost of something, often applied to prompt payment or to certain categories of customers.

Increase

A rise in value, quantity, or some other measure.

Trade Discount

A reduction from the list price given by a seller to a buyer, often based on the volume of the transaction or to incentivize early payment.