Wage
Definition
A wage is the payment received by workers in exchange for their labor services.
Analogy
Imagine you have a part-time job at a local pizza place. Your wage is like your paycheck - it's what you earn for your time and effort spent making pizzas. The higher your wage, the more motivated you might be to work harder or take on extra shifts.
Related terms
Minimum Wage: The lowest legal wage that employers can pay workers.
Labor Market: The interaction between workers and employers where wages are determined.
Human Capital: The skills, knowledge, and experience that workers possess which affects their productivity and earning potential.
"Wage" appears in:
Study guides (2)
Practice Questions (1)
- What is the relationship between wage and labor supply in a factor market?
Resources
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