WAGES

Having studied the general theory of distribution, we are now in a position 10 – take up the study of the determination of the share of the factors of production separately. We shall first lake up wages followed by rent , interest and profit. Meaning of Wages The term ‘wages’ means payments made for the services of labour. “A wage may be defined,” says Benham, “As a sum of money paid under contract by an employer to a worker for services rendered.” A wage payment is essentially a price paid for a particular commodity vit., labour