Question

Is a worker's human capital and his or her resulting productivity the ONLY determinants of that person's wage or salary?


Yes, workers are always paid wages or salaries that reflect their productivity.



Yes, higher human capital is always rewarded with higher pay.



No, it is illegal to base salaries on human capital and productivity.



No, like all resources, supply and demand also affect how much a worker is paid.

Answer 1

The correct answer is

No, like all resources, supply and demand also affect how much a worker is paid.


For example, a worker doing the same computer job might be paid more in New York than in other places: this has to do with the fact that the demand and supply (in form of workers ready to work in NY for a certain wage) are different in those two places