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Labour Economics

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LABOUR ECONOMICS
Q2. Define “Labour Economics”. Explain the nature and scope of Labour Economics. Explain the characteristics of Labour? Labour Economics:-

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“Labour Economics may be defined as a study of the organization, institutions and behavior of the labour market in an industrising or industrial economy”. According to Dole Yoder:“Labour economics or manpower economics is primarily concerned with efficient utilization and conservation of manpower and resources. It studies and seeks to understand the processes by which manpower is applied and utilized in modern society. It is concerned of natural resources in the land”. Scope of Labour Economics:Labour economics has to deal with may be stated as manpower planning, labour …show more content…

7. The marginal productivity of labour is comparatively less than capital. 8. Finally, labour is a living thing and that makes all the differences.

LABOUR ECONOMICS(Page 3) Name : (PL. FILL IN), Enrolment No.( PL. FILL IN)

Q3.

What is meant by the term wages? How would you distinguish between ‘Nominal Wages’ and ‘Real Wages’? Explain the factors influencing real wages. Wages:-

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The price paid for the services of labours in production is called wages. The labourer is generally paid a certain sum of money per day or week or month. Beham defined a wage as “A sum of money paid under contract by an employer to a worker for services rendered”. However, in economics, payment made for all kinds of services, whether by way of salaries or in any other way is included in wages. Differences between Nominal wages and Real wages:Nominal Wages:The amount of money that a labourer gets in exchange of his services is called money wages or nominal wages. If a labourer gets Rs.200, a day for his work, his money or nominal wages will be Rs. 200. However, mere money payment does not reflect the real earnings of the labourer. They do not reveal the standard of living or the goods and services which labourer can buy and consume. Real Wages:The amount of goods and services that labourer can get with his nominal wages is called real wages. Real wages refer to the goods and services, which the money wages can buy, and advantages and disadvantages associated

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