0
What is the difference between 'real wage' and 'nominal wage'?
Wiki User
∙ 12y ago
blAH BLAH BLHA
Wiki User
∙ 12y ago
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 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.
If real wage rate is 10.00 per hour and the price level is 60 what is the money wage rate?
$6.00
If the price level rises and the money wage rate rises by the same percentage what happens to the quantity of real GDP supplied?
When the price level and the money wage rate change by the same percentage, the real wage rate remains constant at its full employment equilibrium level so employment remains constant and real GDP remains constant at "potential GDP" which is the quantity of real GDP at full employment.
What determines the amount of labor that households plan to supply?
In most models, it is primarily the real wage rate.
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.
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.
Explain the difference between salary and wage and give example to illustrate who earns salary and who earns wage?
What is the difference between a salary and commission
What is the difference between slave labor and wage labor?
Abraham Lincoln thought the difference was only that wage labor was temporary and slavery was permanent.
What is wage gap?
the wage gap is the difference of pay between men and women (men get paid more)
What is the wage gap?
the wage gap is the difference of pay between men and women (men get paid more)
Is there a difference between a wage slip and a salary slip?
There is essentially no difference in the function of a wage or salary slip. Wages are general paid by the hour and a salary is pay that is not based on hours.
What is the difference between piece rate system and time wage system?
nothing hahahahahahaha
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 are Major difference between a salary and a wage is?
The basic difference is:A salary is usually paid monthly to office and management personnel.A wage is usually paid weekly to shop-floor, process workers.
What is the difference between a time wage system and a piece wage system?
TWS pays you for amount of time worked. PWS pays you for number of products (or pieces) made.
How is real wages measured?
real wage is
