The hypothesis of equal net advantage explains why
A)the supply of unskilled labour in Canada is as great as it is.
B)two workers doing the same job in the same office are sometimes paid different wage rates.
C)a hard- working employee may get paid less than other employees.
D)lower wages are paid to workers with less qualifications.
E)higher wages must be paid to entice workers to accept less desirable occupations or a less desirable location.

Question

Quizplus · Accepted Answer

The hypothesis of equal net advantage suggests that higher wages must be paid to workers to entice them to accept less desirable occupations or locations, as they have equal net advantages to other workers in more desirable positions. This explains why there may be wage differentials between workers in different occupations or locations.

The Hypothesis of Equal Net Advantage Explains Why