Which of the Following Suggests That Labor Markets Work Less

Multiple Choice

Which of the following suggests that labor markets work less efficiently in the developing countries?

A) The laborers are paid according to their marginal product and not according to the average product.
B) The minimum wage for the unskilled laborers in the developing countries is much lower compared to that in the developed countries.
C) There is an excess supply of skilled labor in the developing countries.
D) The wage gaps between the expanding and the declining sectors are greater than in the higher-income countries.