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.
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e is the false statement according to me
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The false statement is (C) The quality of a good determines wages.
Elemental economic theory states that an employee's wages depend on his Marginal Revenue Product (MRP) which is essentially the value that he/she adds to their employer company.
MRP is determined by Marginal Physical Product (MPP) or the productivity of an employee and Marginal revenue (MR) of last good sold i.e. the demand and price for the good that the employee produces.
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