Compensation and Measurement
Wage is a basic compensation for paid labour, and the compensation for labour per period of time is referred to as the wage rate. Other frequently used terms include:
- wage = payment per unit of time (typically an hour)
- earnings = payment accrued over a period (typically a week, a month, or a year)
- total compensation = earnings + other benefits for labour
- income = total compensation + unearned income
- economic rent = total compensation - opportunity cost
Economists measure labour in terms of hours worked, total wages, or efficiency.
- total cost = fixed cost + variable cost
Read more about this topic: Labour Economics
Famous quotes containing the words compensation and/or measurement:
“... the compensation for a death sentence is knowledge of the exact hour when one is to die. A great luxury, but one that is well earned.”
—Vladimir Nabokov (1899–1977)
“That’s the great danger of sectarian opinions, they always accept the formulas of past events as useful for the measurement of future events and they never are, if you have high standards of accuracy.”
—John Dos Passos (1896–1970)