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<strong>FM</strong> – Federal Need Analysis Methodology, the formula used to calculate the EFC, which is then used to determine a student' s eligibility for the federal financial aid, state aid, and/or institutional aid programs.
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iron law of wages (B1, 13)<br />The SUBSISTENCE theory of wages used by many CLASSICAL ECONOMISTS. It was argued that if workers are paid more than subsistence there will be an increase in population which, with a short time lag given that child labour was used, will increase the labour force, in tum pushing wages back to the subsistence level. Conversely, wages below the subsistence rate will reduce the population, cause excess demand for labour and push wage rates back up to subsistence. The law, in essence, described a long-run equilibrium wage rate. Adam SMITH challenged the law on the empirical grounds that food prices and wages often move in different directions. Growing real wages in the nineteenth century also refuted the law.
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