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  Wages

Wages:

Introduction:

Wages are the prize for labor. There are two main types of wages.

(1) Money wages and
(2) Real wages.

Money wages are also termed as nominal wages. Real wages refer to the commodities and services that the money wages command. They mainly depend on the purchasing power of money that in turn depends upon the price level. The standard of living of workers in a country based upon real wages. Moreover, a farm worker might get low money wages. However if he acquires free board and lodging, we should take that also into account as considering real wages.

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