Wage rates are primarily based on the:
A) level of comparative advantage.
B) extent to which the country is involved in trade with other countries.
C) productivity of labor.
D) institutional factors present.

Question

Quizplus · Accepted Answer

Wage rates are primarily based on the productivity of labor. The productivity of labor is a measure of how much each worker produces per hour. The higher the productivity, the higher the wage rates are likely to be. Increases in productivity are often achieved through better technology, training, or management practices.

Wage Rates Are Primarily Based on The