Which Statement Best Explains the Cause of Wage Differential

question 92

Multiple Choice

Which statement best explains the cause of wage differential

• A)Additional education that increases a worker's wage necessarily increases the worker's productivity, and firms pay their workers based on their productivity.
• B)If discriminating wage differentials persist in competitive markets, it is primarily because either consumers are willing to pay to maintain the discrimination or because government mandates it.
• C)Efficiency wage theory explains that non-discriminatory employers pay lower wages to workers whom discriminatory employers refuse to hire.
• D)Workers from the perfectly competitive market are paid a higher wage than those from other market structures.

---

Definitions:

Parent Country

The country where a multinational company is headquartered or originally from, in contrast to the countries where it operates branches or subsidiaries.

Host Country

The country in which a multinational company operates a facility or office, outside of its home country.

Local Labor Market

The supply and demand for workers within a specific region or area, affecting employment and wages.

Host Country

The country in which a multinational company operates a facility, as opposed to the country where the company is headquartered.