In general, wages are determined:

Question

Quizplus · Accepted Answer

Wages are typically determined by both the skills of the worker and the productivity of the entire economy. The more productive an economy is, the higher wages tend to be, as employers are able to pay workers more without reducing profits. In addition, workers with more in-demand skills or education may be able to command higher wages, as they are able to contribute more to the productivity of the economy. Factors such as labor market competition, bargaining power of workers, and government policies may also play a role in determining wages.

In General, Wages Are Determined