Using the marginal product theory of wages, a worker's "real" wage is:
A) twice the amount of the "money" wage.
B) what the "money" wage will purchase in terms of products.
C) what she earns after taxes.
D) what she would earn if her employer paid her fairly.

Question

Quizplus · Accepted Answer

The marginal product theory of wages suggests that a worker's wage is equal to the value of their marginal product, or the additional output that results from hiring one more worker. This means that a worker's "real" wage, or what they can actually purchase with their wage, depends on the prices of the goods and services they can buy. Therefore, their "real" wage is what the "money" wage will purchase in terms of products.

Using the Marginal Product Theory of Wages, a Worker's "Real