Wages for Low-Skilled Positions Are Typically Higher in Developed Countries

question 13

Multiple Choice

Wages for low-skilled positions are typically higher in developed countries than wages for identical positions in less- developed countries. Which of the following explain why this is the case. I. There is a greater supply of low-skilled labor in less- developed countries. II. There is a greater demand for low-skilled labor in developed countries. III. There is a greater demand for low-skilled labor in less- developed countries.

• A) I only
• B) I and II only
• C) I and III only
• D) II only

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Definitions:

Market Economy

An economy that allocates resources through the decentralized decisions of many firms and households as they interact in markets for goods and services.

Rate Of Economic Growth

The increase in the market value of the goods and services produced by an economy over time, usually measured as the percentage increase in real gross domestic product (GDP).

Human Capital

The economic value of a worker's experience and skills, including education, training, intelligence, skills, health, and other things employers value in employees.

Tariffs

Tariffs are taxes imposed by a government on imported goods and services to protect domestic industries or to generate revenue.