Which of the Following Correctly Explains Why Wages Are Higher

question 28

Multiple Choice

Which of the following correctly explains why wages are higher in the United States than in less developed countries?

• A)The number of hours worked per worker in the U.S.is higher than it is in less developed countries.
• B)The aggregate labor supply curve in the U.S.is highly inelastic.
• C)The output produced by each worker is higher in the U.S.than in less developed countries.
• D)The substitution effect of a wage increase is greater for the U.S.residents than it is for residents of less developed countries.

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Definitions:

Cost Of Goods Sold

Represents the direct costs attributable to the production of the goods sold in a company.

Total Inventory Cost

The complete cost associated with purchasing or producing inventory, including purchase price, conversion costs, and other costs.

Units Sold

The total number of a product that a company sells within a specific time period, often used to measure sales performance.

Periodic LIFO

Periodic LIFO (Last-In, First-Out) is an inventory valuation method used in accounting that assumes the most recently purchased items are sold first, and ending inventory costs are determined at the end of the accounting period.