0
David Ricardo's "iron law of wages" basically states that parents would have more children if wages were raised. These children would then expand the number of workers and lower wages as they entered the labor market. Then, wages would fall and the workers would have fewer children. The process would then start over as wages would once again rise. He used this logic to advocate that wages would always tend toward a minimum level in the long run, hence the "iron law of wages" with static, unchanging wages. Many employers used this argument to support their natural reluctance to raise wages. This "iron law of wages" was also used to provide theoretical support for opposing labor unions.
What else can I help you with?
Which of following best describes the effect of outsourcing on the labor market in the US?
Competition for jobs increases and wages go down
Which of the following best describes the effort of outsourcing on the labor market in the US?
Competition for jobs increases and wages go down.
Which of the following describes one of the major economic benefits of free trade between countries?
Answer this question… Companies can lower production costs by producing goods in countries with low average wages.
David Ricardo's theory called the Iron Law of Wages came to be called?
David Ricardo's theory called the Iron Law of Wages came to be called the Theory of Efficiency of Wages. The Iron Law of Wages says that the worker is going to be paid the minimum wage needed to survive.
According to the circular flow model which of the following is not provided by consumers?
Wages
What kind of science did david ricardos theory called the iron?
David Ricardo's theory called the "iron law of wages" is a concept in classical economics that suggests that wages naturally tend to gravitate towards the level necessary to maintain a worker at subsistence. It implies that any attempts to raise wages above this level would be counterproductive as it would lead to an increase in population, resulting in more workers competing for the same job and ultimately driving wages back down to subsistence.
When was David Wages born?
David Wages was born in 1923.
Which of following best describes the effect of outsourcing on the labor market in the US?
Competition for jobs increases and wages go down
When did David Wages die?
David Wages died on July 30, 2012, in Hollywood, California, USA.
Which of the following describes Henry fords contribution to American society in the 1920s?
Henry's ideas revolutionized production, wages, working conditions, and daily life
What phrases describes socialism?
the Government determine wages.
History of David beckham wages?
How much did David Beckham get in Madrid
What is David Beckhams wages?
TOO MUCH!!
Which of the following best describes the effort of outsourcing on the labor market in the US?
Competition for jobs increases and wages go down.
Which of the following describes one of the major economic benefits of free trade between countries?
Answer this question… Companies can lower production costs by producing goods in countries with low average wages.
David Ricardo's theory called the Iron Law of Wages came to be called?
David Ricardo's theory called the Iron Law of Wages came to be called the Theory of Efficiency of Wages. The Iron Law of Wages says that the worker is going to be paid the minimum wage needed to survive.
What kind of science did David Richards Theory called the iron wages come to be called?
David Ricardo's theory of wages is part of the field of economics, specifically known as classical economics. His theory of iron law of wages posits that in the long run, wages tend to settle at the subsistence level necessary for the workers to survive.
