Money Wages Vs Real Wages - Definitions

What is the concept of cash wage?

Money Wages Vs Real Wages
Money Wages Vs Real Wages
Money wage can be defined as the nominal wage that an individual receives for his work.

What is the concept of real wage?

The real wage can be defined as the volume of goods and services that an individual receives as a result of the monetary wage he receives.

Economic problems resulting from the discrepancy between real and monetary wages?

Here, the gap occurs between the two wages, which is called "monetary deception" When the general level of prices rises, we find that the individual still gets his fixed cash wage as it is, but his real wage has decreased because the amount of goods and services he received has declined. 
The foregoing is called a decrease in per capita consumption spending, and thus the economic well-being of individuals decreases and society enters into a state of economic recession. 
Therefore, when prices rise, the cash wage of individuals must increase in the same proportion so that the gap does not occur between the two wages and results in many economic and social problems.
Location: United States

Comments

Post a Comment

Popular posts from this blog

What is BRICS Group? - Definitions

Image
Who are the members of the BRICS group? BRICS Group The BRICS Group or "BRICS" is a grouping of countries with the fastest economic growth in the world, and it is an abbreviation for the first letter of the countries that make up the group, and they are: Brazil - B Russia - R India - I China - C South Africa - S On August 24, 2023, BRICS expanded the group’s membership and the following are the new members: Argentina. Egypt. Iran. Ethiopia. Saudi Arabia. UAE. The first official meeting between the heads of the four founding countries was held before South Africa's accession in Yekaterinburg, Russia, in June 2009, where the meeting included the announcement of the establishment of a bipolar world order. In 2008, the first high-level meeting of the leaders of the BRIC countries was held in July, on the Japanese island of Hokkaido, where the G-8 summit met at that time.
Read more

Definition of cryptocurrency subscription "IPO" - Definitions

Image
What is a cryptocurrency subscription "IPO"? IPO Cryptocurrency Subscription in digital currencies can be defined as the process of introducing a new currency in the market and trying to attract investors to it, in addition to providing a sum of money for the work team until the project is completed. And then the investors inject money into this currency before it is issued, and in return, the company issuing the new currency gives the investors digital currencies with the value of the investment. What are the types of subscriptions to cryptocurrency? There are three common types of cryptocurrency subscription: The first type: is ICO or the offer of the first coins. In this type, the subscription is done through the coin website itself, and then the coin is listed on any platform, but you must be careful because this type of subscription is a lot of fraud, so you must be careful. The second type: is IEO or the initial exchange offer. In this type, the subscription is made
Read more

Economic Resource Concept - Definitions

Image
Definition of Economic Resources Economic Resource Concept Economic resources are often characterized by relative scarcity, that is, the available amount of them is usually insufficient to produce multiple and renewable human goods and services. We can know it through the following: Economic resources can be defined as anything suitable for the production of goods and services that satisfy human needs. Economic resources can be defined in every other way as the stock of wealth available in society, in addition to being called the factors of production or the inputs of the production process. Elements of economic resources Economic resources are divided into four elements: The Capital element. The Labor element. The Land element. Organization, and Management element. Reasons for studying economic resources What is the reason for the interest of economists in the study of economic resources? If we look at economic resources and why economists are interested in studying them, we will find
Read more