A Decrease in a Person's Real Wage Necessarily Means

question 111

Multiple Choice

A decrease in a person's real wage necessarily means:

• A)lower purchasing power.
• B)a lower nominal wage.
• C)a lower personal disposable income.
• D)a higher nominal wage.
• E)a higher personal disposable income.

---

Definitions:

Residual Dividend Policy

A dividend payment policy wherein the dividends paid are based on the earnings left over after all capital expenditures and working capital needs are covered.

Target Dividend Payout

The portion of earnings a company plans or targets to distribute to its shareholders in the form of dividends.

Liquidating Dividend

A type of dividend paid by distributing a portion of the company’s assets to shareholders, typically during the dissolution of the company.

Tax Purposes

The reason or rationale behind financial decisions or calculations made in compliance with tax laws and regulations.