Labor services in a country can be severely underpriced relative to its productivity
A)because workers are not allowed to freely move across national boundaries to seek higher wages.
B)because among all factor markets,the labor market is the most imperfect.
C)because workers may choose to not move across national boundaries to seek higher wages due to the cultural differences.
D)all of the options

Question

Quizplus · Accepted Answer

All the options provided contribute to the underpricing of labor services relative to productivity. Workers' restricted mobility across national boundaries (A and C) and the imperfections in the labor market (B) can all lead to situations where labor is underpriced compared to its productivity.

Labor Services in a Country Can Be Severely Underpriced Relative