Final answer:
The gross pay calculated based on the number of hours worked is called an Hourly wage (option b). This form of compensation varies with the hours worked and is more common among part-time and younger workers.
Step-by-step explanation:
The term that describes gross pay calculated based on the number of hours an employee has worked is b) Hourly wage. A salary usually refers to a fixed amount of pay an employee receives on a regular basis, regardless of the number of hours worked. Hourly wage compensation changes with the number of hours worked and often involves considerations for overtime when employees work beyond their standard hours. This is consistent with the patterns of different groups of workers in the U.S. economy, where part-time and younger workers are more likely to have their compensation measured on an hourly basis.
According to the demand and supply analysis of labor markets, compensation can be understood in terms of annual salary or hourly wages, with the latter reflecting adjustments on an hourly basis contingent on the hours worked. This analysis helps to understand the labor market dynamics, as well as the overall compensation structure that includes wages, benefits, and various forms of insurance and retirement plans.