Multiple Choice 1 point Which statement is the best explanation of the market theory of wage determination? Management tends to pay a lower wage to workers who support unions. A worker's pay rate is set by supply of and demand for that worker's skills. Management is more willing to pay a high wage to a worker with advanced education. A worker's value in the labor market is determined primarily by that worker's seniority.

## Step 1<br />The market theory of wage determination is a concept in economics that explains how the wages of workers are determined in a market economy. This theory is based on the principles of supply and demand.<br /><br />## Step 2<br />According to the market theory of wage determination, the wages of a worker are determined by the supply of and demand for that worker's skills. This means that if there is a high demand for a particular skill and a low supply of workers with that skill, the wages for that skill will be high. Conversely, if there is a low demand for a skill and a high supply of workers with that skill, the wages for that skill will be low.<br /><br />## Step 3<br />The other options provided in the question do not accurately reflect the market theory of wage determination. For example, the statement that management tends to pay a lower wage to workers who support unions is not a principle of the market theory of wage determination. Similarly, the statement that management is more willing to pay a high wage to a worker with advanced education is not a principle of the market theory of wage determination. Lastly, the statement that a worker's value in the labor market is determined primarily by that worker's seniority is not a principle of the market theory of wage determination.