A valid explanation for real wage growth is
ECONOMICS
JAMB 2013
A valid explanation for real wage growth is
- A. an increase in the rate of productivity
- B. the rising cost of capital accumulation
- C. a contraction of emploment in service industries
- D. an increase in the quantity of labour
Correct Answer: A. an increase in the rate of productivity
Explanation
Real wage growth is largely due to increased in economic activity creating competition between businesses to attract and retain workers. The higher the rate of economic activities (production, buying and selling) in the economy, the higher the real wage growth.
Post an Explanation Or Report an Error
If you see any wrong question or answer, please leave a comment below and we'll take a look. If you doubt why the selected answer is correct or need additional more details? Please drop a comment or Contact us directly. Your email address will not be published. Required fields are marked *