The real wage denotes
A)the number of units of labour time that can be exchanged for one unit of leisure time.
B)the number of units of leisure time that can be exchanged for one unit of labour time.
C)the purchasing power of income earned after taxes are paid.
D)the number of units of labour time that can be exchanged for one unit of consumption goods.
E)the number of units of consumption goods that can be exchanged for one unit of labour time.

Question

Quizplus · Accepted Answer

The real wage refers to the purchasing power of wages, meaning how many goods and services can be bought with the income earned from one unit of labor time.

The Real Wage Denotes