Real wages are higher in the United States than in less developed countries for all of the following reasons,except:

Question

Quizplus · Accepted Answer

The large size of the labor force is not a reason for higher real wages in the United States compared to less developed countries. In fact, a large labor force could potentially lead to lower wages due to oversupply of labor. The skills of the labor force, the amount of capital available per worker, and the output produced per worker are all factors that contribute to higher real wages in the United States.

Real Wages Are Higher in the United States Than in Less