Which of the following reflects the purchasing power of wages when adjusted for inflation? a. real hourly compensation b. direct financial compensation c. indirect financial compensation d. nonfinancial compensation e. nominal hourly compensation

B. Direct financial compensation

Explanation:

When adjusted for inflation the normal wage paid is increased from its existing level to some percentage level similar to inflation level, to meet the inflation in market.

This can be clearly measured as from the actual payment made to the workers which shall include the direct financial compensation paid to the employees. This is because to calculate how much a worker can purchase during inflation is, actually what is the value of money in his hands during inflation, basically the utility.

Therefore, the correct option is:

Direct Financial Compensation.

answerindustrial revolution;