Marx- Wage, Labour and Capital

Question 1

Labour-Power

Answer 1

A commodity- the source of value, and, moreover when properly treated the source of more value than it possesses itself

Question 2

The surplus of labour-power

Answer 2

The excess daily production over it daily cost, while as consequences there diminishes that part of the working-day in which the labour produces the equivalent of their day’s wages, and, on the other hand, lengthens that part of the working-day in which they must present labour gratis to the capitalist.

Question 3

Who owns the value produced by the worker?

Answer 3

The capitalist. As the owner of the raw materials, machines, tools, and money.

Question 4

What are wages?

Answer 4

The capitalist buys the workers’ labour power

Question 5

How are wages determined?

Answer 5

The wages are the price of labour measured in time.

Question 6

How is the price of a commodity determined?

Answer 6

1. When the same commodity is offered by multiple sellers, the buyer (the capitalist) will go for the cheapest price.
2. There is also competition amongst buyers as the seller will go to the highest payer.

Question 7

Consequences of excess of supply over demand

Answer 7

Desperate competition among the sellers (workers) and lack of buyers leads to workers accepting lower wages.

Question 8

What is the cost of the production of labour?

Answer 8

Factors such as:
- cost of training
- amount of time it takes to train a worker

Question 9

Nominal wages

Answer 9

The amount of money for which the labourer sells themselves to the capitalist

Question 10

Real wages

Answer 10

The amount of commodities which they can buy for this money.
They express the price of labour-power in relation to the price of commodities.

Question 11

Relative wages

Answer 11

The share of immediate labour in the value newly created by it, in relation to the share of it, which falls to the accumulated labour, to capital

Question 12

The general law that determines the rise and fall of wages

Answer 12

1. The replacement of the price of the raw materials advanced, in addition to the replacement of the wear and tear or equipment and tools and other instruments of labour.
2. The replacement of the wages advanced
3. The surplus leftover- I.e. the profit of the capitalist

Question 13

Why are the interests of capital and wages labour diametrically opposed?

Answer 13

A rapid growth of capital is synonymous with a rapid growth of profits profits grow rapidly only when the price of labour- the relative wages - decrease just as rapidly

Question 14

The effects of capitalist competition

Answer 14

Competition seeks to rob capital from the golden fruits of this power by reducing the price of commodities to the cost of production.

Question 15

The effects of capitalist competition

Answer 15

Competition seeks to rob capital from the golden fruits of this power by reducing the price of commodities to the cost of production.

Question 16

How do competitive conditions effect the determination of wages?

Answer 16

1. The greater the division of labour ( e.g. 1 worker doing the work of 4 people)
2. The labour is simplified, thus reducing the special skill of the labour, therefore the labourer can demand less in wages.
3. The working conditions decrease and alienation increases as the competition increases and the wages decrease.