Macro-Economics- Theory of Wages

Income of self employed is partly:

• Wages

• Dividend

• Profit

• Both a and c

The theory of negotiated wages is based on the

• idea that wages are influenced by a labor union negotiating with management for better pay and benefits

• the equilibrium wage created by supply of labor and demand of labor

• concept the more skills and talents you have the higher your pay should be

• principle of physical capital and resource accumulation

Subsistence Wage theory is based on minimum wages for human existence as population increases as wages increase is based on which law?

• Ricardo's natural law of labour

• Malthusian Law

• Adam Smith wage theory

• Mill Theory

Marginal Productivity Theory is based on:

• Derived demand of Labour

• Capability of Labour to produce

• Value of Marginal revenue product

• All of these

Supply Curve of Labour is backward bending or sloping curve due to:

• Demand and Supply of Labour

• Bargaining power

• Income and Substitution effect

• Wage differentials

Real wages can be expressed as:

• Money Wages/ Index of Price Level

• Index of Price level/ Money Wage

• Price Level/ Money Wage

• Money Wage/ Price level

Wages in modern times, just like the other factors of production are governed by

• government regulation

• labor laws

• supply and demand

• glass ceiling

Which theory is called Iron Law of Wages?

• Subsistence Theory

• Wage Fund Theory

• Marginal Productivity Theory

• Modern Theory of Wages

The wage rate shall be ...........................the value of product.

• Equal

• Less

• More

• Equal or less

According to Subsistence theory, Wages will ........................ with increase in population.

• increase

• decrease

• equal

• none