Which one of the following statements is TRUE?
A) Industries where the relative demand for workers is lower than supply will pay a higher wage.
B) Industries that have identical demand for workers may not pay identical wages.
C) Industries where the relative demand for workers is higher than supply will pay a lower wage.
D) A higher compensating wage differential in an industry implies a relatively higher supply of workers.

Question

Quizplus · Accepted Answer

Industries with identical demand for workers may still pay different wages due to factors such as differences in working conditions, required skill levels, geographic location, and other compensating differentials. These factors can lead to wage disparities even when the demand for workers is the same.

Which One of the Following Statements Is TRUE