Match the following Themes of Theories of Wages with their propagators : Themes of Wages Theory…
Adam Smith stated in 'The Wealth of Nations' that labour is the real measure of the exchangeable value of all commodities ((a)-iii). David Ricardo formulated the Subsistence…
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Match the following Themes of Theories of Wages with their propagators : Themes of Wages Theory Propagator
a. “Labour is the real measure of the exchangeable value of all commodities.”
i. David Ricardo
b. “The natural price of labour is that price which is necessary to enable the labourers to subsist and per- petuate their race without either increase or diminution.”
ii. Michel Kalecki
c. “Wages cannot rise unless either the wage fund increases or the number of workers decreases.”
iii. Adam Smith
d. “Wages are a residual, the level of real wages depending on what was left of the total product after capitalistic class had its cut.”
iv. J.S.Mill
Answer and explanation
Correct answer C
Adam Smith stated in 'The Wealth of Nations' that labour is the real measure of the exchangeable value of all commodities ((a)-iii). David Ricardo formulated the Subsistence Theory defining the natural price of labour ((b)-i), John Stuart Mill propounded the Wages Fund Theory linking wage levels to the ratio of capital fund to workforce size ((c)-iv), and Michal Kalecki (alongside residual claimants) linked real wages to the distribution left after capitalist share ((d)-ii).
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UGC NET HRM / Labour Welfare and Industrial Relations