Important Questions on Wages (Economics) for all Competitive Exams

Important Questions on Wages (Economics)

Important Questions on Wages (Economics)/ Top Ten question on Wages (Economics) / MCQ’s on Wages (Economics) / Questions asked in previous  year exams on Wages (Economics)

Important Questions on Wages (Economics) : ‘Wages ‘is one of the main topics in the Economics subject and it is of utmost importance for all those candidates who are preparing for the Government Competitive Exams like UPSC, IAS, PSC, NDA, SSC, CTET/ PSPET/ PTET etc.

Important Questions on Wages (Economics)

Wages:Price paid for the use of labour is called wages in economics. It refers to all those mental and physical activities to earn income. It includes different types of payments e.g. wages paid per hour, per day, monthly salary etc. Nominal /money wages and real wages are the basic two types of wages. Nominal wages means money value and real wages means purchasing power of money. According to marginal productivity theory of wages, labourers get wages equal to their marginal productivity. But according to modern theory, wages are determined at the equilibrium point of demand and Supply of labourers.

Important Questions on Wages (Economics)

1. Wages Paid in Monetary/ Nominal term is called….
(a) Money wages
(b) Real wages
(c) Daily wages
(d) Monthly wages

2. If price level or prices of goods and services increases, the real wages will be:
(a) Increasing
(b) Decreasing
(c) Constant
(d) None of these

3. What is marginal productivity of laboures?
(a) Addition made to total revenue by employing one more unit of labour
(b) Addition made to total revenue by employing one more unit of Capital
(c) Addition made to total revenue by employing one more unit of land
(d) None of these

4. According to marginal productivity theory of wages. Supply of labourers is:
(a) Variable
(b) Fixed
(c) Constant
(d) Infinite

5. A firm will get super-normal profit if…
(a) AR > AW
(b) AR = AW
(c) AR < Aw
(d) All of the above

6. According to modern theory of wages determination, demand for labourers depends on :
(a) Demand for the commodities
(b) Price of other factor of production
(c) Bath (a) and (d)
(d) None of these

7. There is a __________ relationship between supply of labour and wage rate.
(a) Direct
(b) Inverse
(c) Same
(d) Parallel

8. Supply of labour is affected by:
(a) Substitution effect
(b) Income effect
(c) Bath (a) and (d)
(d) Diminishing effect

9. Marginal productivity theory of labour is subject to :
(a) Law of diminishing returns
(b) Law of increasing returns
(c) Law of constant returns
(d) All of the above

10. If a worker is working less hours at works then his real wages will be:
(a) Moose
(b) Less
(c) Constant
(d) Moderate



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1. a
2. b
3. a
4. b
5. a
6. c
7. a
8. c
9. a
10. a

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