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Wages in the United States Are Higher Than Those in Mexico

Question 2

Multiple Choice

Wages in the United States are higher than those in Mexico primarily because


A) output per worker is higher in Mexico than in the United States.
B) output per worker is higher in the United States.
C) the human and physical capital of American workers is lower than that of their Mexican counterparts.
D) all of the above are correct.

Correct Answer:

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