Re: In any country, the wages commanded by the labourers who have
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11 Jul 2019, 10:27
Topic
How are wages of laborers determined
Scope
An illustration highlighting how economic advantages within certain
industries affect wage rates.
Passage Map
P 1 – To explain how wages are determined within industries
P 2 & P 3 – To explain how wages vary in relation to the economic
advantages that certain industries in a country have over
foreign countries
1. Answer: B
Explanation:
The author mentions at the end of the second paragraph that no
employer or firm will be able to exploit the opportunities present in
groups C and D unless the government provides them with some aid
to compensate for the low economic advantages. Thus, (B) is the
correct answer.
(A) Extreme option. If even after the population increase, the
increased population can be absorbed in group A, then this
will not lead to lower wages.
(C) The author merely uses the example of a political party in the
third paragraph. He does not say that this is necessarily the
case. Even if this is the case, the political party merely decided
which activities to undertake, and not the wage rate as such.
(D) Charging high duties is not a way of wage regulation; it can, in
fact, have negative consequences as explained in the passage.
(E) This is on the same lines as option A. The passage never states
that population size is the only determinant of wage rate.
There could be other factors as well.
2. Answer: C
Explanation:
The last sentence of the third paragraph clearly shows that workers
in groups A and B could be at a disadvantage were the government
to decide which economic opportunities should be exploited by these
workers. Thus, (C) is the correct answer.
(A) Since the government will impose duties on these products,
their prices will actually increase.
(B) There will be no impact on the prices of these products.
(D) There is nothing in the passage to suggest this.
(E) Most likely, the wage rates will decrease because we are now
exploiting opportunities in groups C and D. The wage rates
would be highest if we only exploited opportunities in group A
or, at the most, group B.
3. Answer: A
Explanation:
As can be inferred from para 2, the author has specifically mentioned
the relationship between population and the wages the workers
would earn. It is only with increase in population that other groups
are even considered. Hence, (A) is the correct answer.
4. Answer: B
Explanation:
The author has, in para 1, mentioned the relationship between wages
and the least productive unit of labor. He then goes on to explain the
impact that population has on the groups, the effect of legislation on
them as well as the earning capacity. Hence, (B) is the correct
answer.
(A) & (C) The author has limited himself to analyzing a
situation the government might create by changing
priorities—the role of the government or its policies
are not discussed in isolation.
(D) The author has confined himself only to the discussion of how
wages are determined.
(E) As inferred from para 1, ‘In any country…disadvantages’.