Which of the Following Suggests That Labor Markets Work Less

question 33

Multiple Choice

Which of the following suggests that labor markets work less efficiently in the developing countries?

• A)The laborers are paid according to their marginal product and not according to the average product.
• B)The minimum wage for the unskilled laborers in the developing countries is much lower compared to that in the developed countries.
• C)There is an excess supply of skilled labor in the developing countries.
• D)The wage gaps between the expanding and the declining sectors are greater than in the higher-income countries.

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Definitions:

Secondary Labor Market

Refers to segment of the labor market characterized by low pay, poor job security, and limited career prospects, often involving part-time or temporary work.

Primary Labor Market

Refers to sectors that offer high wages, good benefits, and stable employment, contrasting with the secondary labor market.

Semiskilled Labor

Workforce individuals possessing some training and skills but less than that required for skilled labor, often involving manual or repetitive tasks.

Backward-Bending

Refers to the portion of a labor supply curve that bends backward at higher wage levels, indicating a decrease in labor supply as wages increase beyond a certain point.