Describe The Meaning And Kind Of Wages.

Labor is an important factor of production. The labor services are supplied in the process of production. The terms 'wages' means payment made for the services of labor. Therefore, it is the payment to labor for its assistance to the production of goods.    According to Benham, "as a sum of money paid under contract by an employer to a worker for services rendered, thus labor participates in an exchange relationship. A worker gives his time and labor services in an exchange donation ship. A worker gives his time and labor services in a production process and in exchange, he gets money income including fringe benefits.    Kinds of Wages: There are two kinds of wages i.e.    1. Nominal wages: The total amount of money earned by a labor during a certain period is called nominal wage. For example, we employ a typist. He render his services to us as a typist. We pay him Rs.3, 000/- per month for his services.    2. Real wages: Wages in term of the goods and services the money wages will by are called real; wages. These include money wages and other facilities like, free accommodation, telephone, transport, electricity etc. The slandered of living of the people can be estimated from the real wages. There is an inverse functional relationship between the prices and the real wages. If prices are rising more rapidly then nominal wages. Then the real wages are falling and vice versa.