Question

When a country's labor market is in equilibrium in the specific factors model, the wage rate Group of answer choices will be higher in the sector where product price is lower. will be the same in both sectors. will be higher in the export-competing sector. will be higher in the sector where product price is higher. will be higher in the import-competing sector.

Answer 1

The wage rate will be the same in both sectors

Step-by-step explanation:

In any country where there is equilibrium in the labor market, the wage rate will be the same in all sectors because at equilibrium, the supply of labor equals their demands by the industries. This simply means, the number of people within the working age bracket and all persons who are looking for work at the going wage can find a job.