If prices rise quickly but wages remain slow, what will be the effect on urban workers?
Answer and explanation
Correct answer: Their real income will fall
When the prices of goods rise faster than wages, workers can buy fewer goods with the same income. Their real income, or purchasing power, therefore falls. An immediate increase in political power is not a direct result of rising prices. Exam tip: compare wage growth with price growth to determine the change in real income.
Frequently asked questions
What is the correct answer to this question?
Their real income will fall
Why is this the correct answer?
When the prices of goods rise faster than wages, workers can buy fewer goods with the same income. Their real income, or purchasing power, therefore falls. An immediate increase in political power is not a direct result of rising prices. Exam tip: compare wage growth with price growth to determine the change in real income.
Which subject and chapter does this question cover?
This is a Class 9 History question. Chapter: The French Revolution. Topic: French Society During the Late Eighteenth Century.
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