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Labor Services in a Country Can Be Severely Underpriced Relative

Question 32

Multiple Choice

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 above

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