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Eduncle posted an MCQ
October 13, 2019 • 21:11 pm 0 points
  • UGC NET
  • Commerce

Match List-I with List-II relating to wage theories and its propounders and indicate the code representing correct matching :

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    Eduncle Best Answer

    The subsistence theory of wages, advanced by David Ricardo and other classical economists, was based on the population theory of Thomas Malthus. It held that the market price of labour would always tend toward the minimum required for subsistence. 
    Surplus value is a central concept in Karl Marx’s critique of political economy. “Surplus value” is a translation of the German word “Mehrwert”, which simply means value added (sales revenue less the cost of materials used up).
    According to Adam Smith, the demand for labour and rate of wages depend on the size of the wages fund. Accordingly, if the wages fund is large, wages would be high and vice versa.
    Residual Claimant theory was put-forth by the American economist Francis A. Walker. According to this theory, wages are the residue left over after the other factors of production have been paid their remuneration, whatever us left over after making payment to other factors constitutes wages. Thus, wages are equal to the total income minus rent, interest and profits.

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