Explanation:

- Option 1: Cost of living

- This means setting wages so workers can afford basic needs (food, shelter, clothing).

- Many believe minimum wages should cover rising living costs.

- Option 2: Standard of living

- Focuses on allowing workers to enjoy a better quality of life, not just meeting basics.

- Goes beyond mere survival, aims for comfort and some social well-being.

- Option 3: Productivity

- Suggests wages should match how much a worker produces or contributes.

- Often used in more advanced economies, linking wages to output.

- Option 4: None of these

- This means none of above factors are considered, which is not the case.

Correct Answer: Option 1 - Cost of living

India’s wage policy mainly aims at covering cost of living, especially when setting minimum wages.