Sign Up

Have an account? Sign In Now

Sign In

Forgot Password?

Don't have account, Sign Up Here

Forgot Password

Lost your password? Please enter your email address. You will receive a link and will create a new password via email.

Have an account? Sign In Now

You must login to ask a question.

Forgot Password?

Need An Account, Sign Up Here

Please briefly explain why you feel this question should be reported.

Please briefly explain why you feel this answer should be reported.

Please briefly explain why you feel this user should be reported.

Sign InSign Up

Abstract Classes

Abstract Classes Logo Abstract Classes Logo
Search
Ask A Question

Mobile menu

Close
Ask a Question
  • Home
  • Polls
  • Add group
  • Buy Points
  • Questions
  • Pending questions
  • Notifications
    • sonali10 has voted up your question.September 24, 2024 at 2:47 pm
    • Abstract Classes has answered your question.September 20, 2024 at 2:13 pm
    • The administrator approved your question.September 20, 2024 at 2:11 pm
    • banu has voted up your question.August 20, 2024 at 3:29 pm
    • banu has voted down your question.August 20, 2024 at 3:29 pm
    • Show all notifications.
  • Messages
  • User Questions
  • Asked Questions
  • Answers
  • Best Answers
Home/ Questions/Q 29387
Next
In Process
N.K. Sharma
N.K. Sharma
Asked: March 15, 20242024-03-15T09:27:26+05:30 2024-03-15T09:27:26+05:30In: B.Com

Discuss the concepts of money wage and real wage.

Talk about the differences between money wage and real wage.

BCOG-171IGNOU
  • 0
  • 11
  • 162
  • 0
  • 0
Share
  • Facebook

    1 Answer

    • Voted
    • Oldest
    • Recent
    1. Abstract Classes Power Elite Author
      2024-03-15T09:27:50+05:30Added an answer on March 15, 2024 at 9:27 am

      Money wage and real wage are two important concepts in economics that help us understand the purchasing power of wages.

      **Money Wage:** Money wage refers to the amount of money paid to workers for their labor. It is the nominal wage, expressed in terms of the currency of the country. For example, if a worker is paid $20 per hour, then $20 is their money wage.

      **Real Wage:** Real wage, on the other hand, refers to the purchasing power of the money wage. It is the amount of goods and services that can be purchased with the money wage. Real wage takes into account the effect of inflation or deflation on the purchasing power of money. It is calculated by dividing the money wage by the price level.

      The formula for calculating real wage is:

      \[
      \text{Real Wage} = \frac{\text{Money Wage}}{\text{Price Level}}
      \]

      For example, if the money wage is $20 per hour and the price level is 1.2, then the real wage would be:

      \[
      \text{Real Wage} = \frac{20}{1.2} = 16.67
      \]

      This means that with a money wage of $20 per hour, the worker can purchase goods and services equivalent to $16.67 in today’s prices.

      The concept of real wage is important because it reflects the actual purchasing power of wages. A rise in money wages may not necessarily lead to an increase in real wages if prices rise by the same or a greater percentage. Conversely, a fall in money wages may not result in a decrease in real wages if prices fall by a greater percentage.

      In summary, while money wage is the nominal amount of money paid to workers, real wage takes into account the purchasing power of that money wage. Understanding the relationship between money wage and real wage is crucial for analyzing changes in living standards, inflation, and economic growth.

      • 0
      • Share
        Share
        • Share onFacebook
        • Share on Twitter
        • Share on LinkedIn
        • Share on WhatsApp

    Related Questions

    • What are the social and environmental responsibilities of a retailing company?
    • What are the various operational levels of business ethics and employees?
    • Highlight the importance of ethics in the management of inventory.
    • What are the key principles that underpin ethical practices in retail promotion?
    • What is price discrimination? Explain different types of price discriminations.
    • Discuss the concept of product endorsement and brand partnership.
    • What are customers’ top concerns on data consent to companies?
    • In what ways do fair trade principles integrate with environmental sustainability? Why is this integration crucial for our planet’s future?

    Sidebar

    Ask A Question

    Stats

    • Questions 21k
    • Answers 21k
    • Popular
    • Tags
    • Pushkar Kumar

      Bachelor of Science (Honours) Anthropology (BSCANH) | IGNOU

      • 0 Comments
    • Pushkar Kumar

      Bachelor of Arts (BAM) | IGNOU

      • 0 Comments
    • Pushkar Kumar

      Bachelor of Science (BSCM) | IGNOU

      • 0 Comments
    • Pushkar Kumar

      Bachelor of Arts(Economics) (BAFEC) | IGNOU

      • 0 Comments
    • Pushkar Kumar

      Bachelor of Arts(English) (BAFEG) | IGNOU

      • 0 Comments
    Academic Writing Academic Writing Help BEGS-183 BEGS-183 Solved Assignment Critical Reading Critical Reading Techniques Family & Lineage Generational Conflict Historical Fiction Hybridity & Culture IGNOU Solved Assignments IGNOU Study Guides IGNOU Writing and Study Skills Loss & Displacement Magical Realism Narrative Experimentation Nationalism & Memory Partition Trauma Postcolonial Identity Research Methods Research Skills Study Skills Writing Skills

    Users

    Arindom Roy

    Arindom Roy

    • 102 Questions
    • 104 Answers
    Manish Kumar

    Manish Kumar

    • 49 Questions
    • 48 Answers
    Pushkar Kumar

    Pushkar Kumar

    • 57 Questions
    • 56 Answers
    Gaurav

    Gaurav

    • 535 Questions
    • 534 Answers
    Bhulu Aich

    Bhulu Aich

    • 2 Questions
    • 0 Answers
    Exclusive Author
    Ramakant Sharma

    Ramakant Sharma

    • 8k Questions
    • 7k Answers
    Ink Innovator
    Himanshu Kulshreshtha

    Himanshu Kulshreshtha

    • 10k Questions
    • 11k Answers
    Elite Author
    N.K. Sharma

    N.K. Sharma

    • 930 Questions
    • 2 Answers

    Explore

    • Home
    • Polls
    • Add group
    • Buy Points
    • Questions
    • Pending questions
    • Notifications
      • sonali10 has voted up your question.September 24, 2024 at 2:47 pm
      • Abstract Classes has answered your question.September 20, 2024 at 2:13 pm
      • The administrator approved your question.September 20, 2024 at 2:11 pm
      • banu has voted up your question.August 20, 2024 at 3:29 pm
      • banu has voted down your question.August 20, 2024 at 3:29 pm
      • Show all notifications.
    • Messages
    • User Questions
    • Asked Questions
    • Answers
    • Best Answers

    Footer

    Abstract Classes

    Abstract Classes

    Abstract Classes is a dynamic educational platform designed to foster a community of inquiry and learning. As a dedicated social questions & answers engine, we aim to establish a thriving network where students can connect with experts and peers to exchange knowledge, solve problems, and enhance their understanding on a wide range of subjects.

    About Us

    • Meet Our Team
    • Contact Us
    • About Us

    Legal Terms

    • Privacy Policy
    • Community Guidelines
    • Terms of Service
    • FAQ (Frequently Asked Questions)

    © Abstract Classes. All rights reserved.