0
Want this question answered?
Be notified when an answer is posted
Add your answer:
Earn +20 pts
The real wage will rise if the nominal wage?
The real wage is the amount of money paid when adjusted for inflation. This wage will rise if the nominal wage rises.
What is the difference between 'real wage' and 'nominal wage'?
blAH BLAH BLHA
How do you distinguish between money wage and real wage?
Real Wage = Money Wage / Price Index Real wage measures purchasing power, that is what an hour's labor can buy.
How is real wages measured?
real wage is
Explain the difference between real wage and nominal wage?
Nominal wages refer to the wages paid in terms of money. This can be called as money wages. The remuneration received by labor in cash is called money wage or nominal wage. But money does not measure the real earnings of the worker. In order to ascertain the real earnings of the worker, the term; "real wages" is used which indicates the exact benefit that would accrue to labor through the remuneration he gets. It thus denotes the necessaries, comforts and conveniences and other facilities which a labor could enjoy by working at a job. Since the money received by labor commands the necessary comforts and conveniences, the purchasing power of money determines to a large extent the real wages of the worker. Purchasing power of money: The real wage may be less while nominal or money wage is high and this depends on the purchasing power of the money. The value of money is changing and with it the purchasing capacity also gets changed. The changed price level and index number indicated the exact purchasing power of money. It is evident that compared to the earlier years, the money wage at present is going up many times and the real wage has not increased due to inflation and poor purchasing power of money. The cost of living is different in various places and though money wage may be high in metropolitan towns, the real wage may be far less than what it would in rural areas. Method of payment: If wages are paid entirely in cash it is called as money wages. If a part of it is paid in kind, it is called as real wages. In some countries, in the case of agricultural labor, the afternoon lunch or meals would form part of the wages to be paid to the worker. In such cases, the labor gets real wages and any benefit extended by non monetary methods, forming part of wage is a real wage earned by the worker. Housing accommodation, provision of breakfast, provision of clothing etc; all form part of real earnings of the worker. The wage earner considers all these aspects while preferring a particular kind of work. Subsidiary earning: In order to find out the real earnings or real wage of the worker, the extra earnings, if any, should be also taken into consideration. For example, a professor who is getting a salary from his University may also earn extra income through tuitions and home work help. A laborer in a vegetable market may get free supply of vegetables for him. A worker in a diary farm may get milk free every day and the laborer working in a textile mill may get his clothing free. These are all subsidiary earnings in the work and these incomes should be taken into consideration in deciding the real wage of the worker. Nature of employment: The nature of employment decides the real wage to the worker and in the case of regularity of employment, the regular work with low payment is always preferred to irregular work with higher wages. When it comes to future prospects, the prospects of promotion and higher wage in future may also induce a person to work for a low wage. As such, while comparing the wages of two persons one with higher wage and the other with lower wage, the value attached thereto should be considered. The real wage of the latter may be considered high.
What has the author Umar Ahmed Faruqui written?
Umar Ahmed Faruqui has written: 'Employment effects of nominal-wage rigidity'
What is the nominal wage?
nominal salary is the amount of money you are paid - in the currency of your country. The figures of the nominal salary are not telling you how you are paid - is the salary good or bad, i.e. figures may be"high", but salary may be bad because food, accomodation and clothing are very expensive and their prices accomponed with high inflation=
What does the real wage represent?
the wage measured in dollars of constant purchasing power; the wage measured in terms of the quantity of good and services it buys.
What has the author Christoph Knoppik written?
Christoph Knoppik has written: 'Downward nominal wage rigidity in europe' -- subject(s): Wages, Econometric models
What is a real wage?
individual's actual purchasing power
If real wage rate is 10.00 per hour and the price level is 60 what is the money wage rate?
$6.00
The main determinant of real wage is?
purchasing power of maney
