Labor services in a country might be underpriced relative to productivity because
A)workers are not allowed to freely move across national boundaries to seek higher wages.
B)some countries do a bad job of educating their work force, consequently they are not very productive.
C)in some countries there is a shortage of capital investment.
D)all of the above are equally important

Question

Quizplus · Accepted Answer

The lack of free movement of labor across national boundaries restricts the ability of workers to seek higher wages in other countries. This can lead to underpriced labor services in certain countries relative to their productivity.

Labor Services in a Country Might Be Underpriced Relative to Productivity