Which one of the following statements is FALSE?
A) Industries where the relative demand for workers is lower than supply will pay a lower wage.
B) Two industries that have identical demand for workers will also pay the same wage.
C) Industries where the relative demand for workers is higher than supply will pay a higher wage.
D) A higher compensating wage differential in an industry implies a relatively lower supply of workers.

Question

Quizplus · Accepted Answer

The statement B is false because even if two industries have identical demand for workers, they might not pay the same wage due to differences in working conditions, required skills, geographic location, and other factors that affect wage levels.

Which One of the Following Statements Is FALSE