Question

The demand for plumbers is the same in country A and country B, but the plumbers in country A earn less than the plumbers in country B. What can explain this difference? Select one: a. The supply of plumbers is greater in country B than country A. b. The supply of plumbers is greater in country A than country B. c. The economy of country B is more productive than the economy of country A. d. The economy of country A is more productive than the economy of country B.

Answer 1

Answer:The supply of plumbers in country A is greater than the supply of plumbers in country B.

Explanation:

The state of demand and supply of labour has a great effect on wages of workers. If the supply of plumbers is grater than the number s of households demanding plumbering services the wages for the plumbers will fall because more plumbers are available for the few works available and this is the situation why plumbers in country A earn less than B though the demand in both countries are the same but they do not vary in the same proportion with their demands.

The supply of plumbers in B is not greater than A and this why B earn more. Productivity refers to measuring the level of outputs in relation to the inputs such labour, capital in production and this does not have impact on wages compare to demand and supply of labour but it's impact is on production.