Question

Which statement is false? A. A society accepts minimum wage laws as a method of determining wages. B. The market value of a good determines wages. C. The quality of a good determines wages. D. Employee productivity determines wages. E. The price floor determines the minimum wage.

Answer 1

Answer: C. The quality of a good determines wages.

Explanation:

The market theory of wage determination, form classical economy, states that wages, meaning the price of labor, are defined by supply and demand, just like any other price.  

Under this perspective, the price workers selling their labor can charge is limited by numerous determinants on both the supply and the demand front. For example, the supply and demand of available workers, and the skills they have. However, under no circumstance, the quality of a good is believed to be determinant on wages.  

Answer 2

C. the quality of a good determines wages, will be your answer