Which of the following best explains why assembly-line workers in the United States earn significantly more than assembly-line workers in Mexico?
I. The supply of low-skilled laborers, such as those that work on assembly lines, is higher in Mexico.
II. The demand for assembly-line workers is higher in the United States.
III. Assembly-line workers are more productive in the United States.

Question

Quizplus · Accepted Answer

The higher supply of low-skilled labor in Mexico (I) and higher demand for such workers in the U.S. (II) contribute to wage differences. Additionally, higher productivity in the U.S. (III) can lead to higher wages.

Which of the Following Best Explains Why Assembly-Line Workers in the United