Answer to Question #97881 in Macroeconomics for annie

Question

Starting with 1970’s according to many economists, rate of exploitation of the workers has
increased. Using the neoclassical definition of exploitation, write how this claim can be tested.

Answer 1

The neoclassical definition of exploitation is a situation where the productivity and wages of workers is unequal, such that wages are lower. Therefore, the exploitation of workers has been tested using the inequality between workers wage and workers productivity and it has been proven that the ratio has never been equal mostly in developing countries for many years.