MCQ Practice on

WAGE
THEORY
By-Lakshmi Kushwaha
 NTA UGC NET/JRF Dec -2020
Industrial Relations and Labour welfare/HRM
CODE 55
Paper 2
Presented by
Lakshmi Kushwaha
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1.Which importance is emphasised by the
reinforcement and expectancy theory?

a. Person actually experiencing award

b. Seeking to restore equality
c. Holding identical jobs in the organisation
d. None of the above

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2.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
Codes:
a b c d
(A) ii i iii iv
(B) iii ii iv i
(C) iii i iv ii
(D) iv ii iii i

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3.Match the following:

Theory of wages Propagators

a. Wage Fund Theory i. John Bates Clark

b. Marginal Productivity Theory ii. John Davidson
c. Bargaining Theory iii. John Stuart Mill
d. Investment Theory iv. Gilelman

Codes:

abcd
(A) ii iv i iii
(B) iii i ii iv
(C) iv ii iii i
(D) i iii ii iv
4.The “Marginal Discounted Product of Labour” as a modified
version of Marginal Productivity Theory was advanced by

(A) Taussig
(B) Kalecki
(C) Ricardo
(D) Adam Smith

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5.Which of the following statements best describes a version of the Efficiency
Wages theory?
a) Wages are kept higher than market forces would dictate because
employers want to induce high effort from the workers.
b) The efficiency wage is the lowest wage that an employer can offer
workers, for a given unemployment rate, and still make positive profits.
c) When turnover rates are high, employers can pay workers low wages.
d) Wages are said to be efficient because they allocate resources across
economic agents in a welfare maximizing manner.

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6.Who among the following propounded the ‘Bargaining
Theory of Wages’?
(a)Adam Smith
(b) David Ricardo
(c) Stuart Mill
(d) John Davidson

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7.Which of the following theories is known as iron law theory of wages ?
a) subsistence theory
b) wage fund theory
c) marginal productivity theory
d) collective bargaining theory

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8.Find out the characteristics of collective bargaining
which is not applicable;

(A) It is a collective process.

(B) It is a flexible process.
(C) It is not a bipartile process.
(D) It is interdisciplinary system.

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9.Dearness allowance is paid to employees:
a) as a reward for working under unsafe conditions
b) as an extra payment for overtime
c) to neutralize the impact of rising prices
d) none of the above

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10.Real wage is
a) the living wage
b) the fair wage
c) the purchasing power of the wage
d) the minimum wage

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11.In perfect competition, wages will be determined in the labour
market:
a) by the government
b) according to the desire of working class
c) according to demand and supply
d) none of the above

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12.Which theory of wages assumes that Labour is considered as
Residual Claimant ?
a) Marginal productivity theory
b) wage fund theory
c) residual claimant theory
d) collective bargaining theory

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13.Which theory of wages assumes Labour was to be treated as
an article of commerce which could be purchased on payment of
subsistence price ?
a) Marginal productivity theory
b) Surplus value of money theory
c) residual claimant theory
d) collective bargaining theory

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Thanks!

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