Why Might Equally Competent and Hard-Working Janitors Earn More in the United

question 91

Multiple Choice

Why might equally competent and hard-working janitors earn more in the United States than in India?

• A) India does not have labor markets.
• B) Economics is not the same in the United States as it is in India.
• C) An hour of janitorial service raises less revenue in the United States because the U.S. firm is more productive.
• D) An hour of janitorial service raises more revenue in the United States because the U.S. firm is more productive.

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Definitions:

Price Change

A modification in the cost of goods and services over time, reflecting economic factors such as inflation, supply, and demand.

Pepsi

A carbonated soft drink manufactured by PepsiCo, known for being one of the most popular cola beverages globally alongside Coca-Cola.

Coke

A fuel with a high carbon content and few impurities, made by heating coal in the absence of air, used mainly in steel manufacturing.

Income Effect

The alteration in the income of either a person or an economy and the impact this change has on the demand for a specific product or service.