10 Questions
Who are the propounders of the Bargaining Theory of Wages?
John Davidson and Francis Ysidro Edgeworth
Which theory of wages suggests that workers are paid a wage equal to the additional value created by the last unit of labor employed?
Marginal Productivity Theory
According to the Residual Claimant Theory, what does labor receive after all other factors of production have been compensated?
Residual income
What is the main idea behind the Efficiency Wage Theory?
Paying workers higher wages can lead to increased productivity and motivation
Which theory proposes that wages are influenced by the bargaining power of employers and workers?
Bargaining Theory of Wages
According to the Marginal Productivity Theory of Wages, what determines the wage level?
Number of laborers and wage fund
Which economist is associated with the Subsistence Theory of Wages (The Iron Law of Wages)?
David Ricardo
What does the Wage Fund Theory propose?
Wages are dependent on the size of the wage fund and number of laborers
Who refined the Wage Fund Theory initially proposed by Adam Smith?
John Stuart Mill
What happens according to the Subsistence Theory of Wages if wages rise above a certain level?
Labor surplus occurs
Explore different theories proposed by economists to explain the determination of wages in labor markets. Learn about the Subsistence Theory of Wages, associated with David Ricardo, and other notable theories put forward by prominent economists.
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