Which of the following is true of market wage rates?
A) They remain the same across various regions in a country.
B) They change according to the demand and supply of labor.
C) They remain consistent over time.
D) They are uninfluenced by the local unemployment rates.
E) They are independent of the different levels of competitiveness for talent.

Question

Quizplus · Accepted Answer

Market wage rates are determined by the intersection of demand and supply for labor. If there is a high demand for a particular type of labor and a low supply of workers with those skills, the wage rate will increase. On the other hand, if the supply of labor exceeds demand, the wage rate will decrease. Therefore, wage rates are not fixed or consistent over time, and they vary across regions and industries. Local unemployment rates and levels of competitiveness for talent can also influence wage rates.

Which of the Following Is True of Market Wage Rates