Which of the following statements are true/false?
1. The institutional wage theory states that level of compensation is determined on empirical and quantitative basis.
2. Consumption theory was formulated on the concept that more wages will lead to more consumption.
3. Investment theory states that employee's compensation is determined by the rate of return on that employee's investment.
4. Supply and demand theory states that wages are determined based on demand and supply of labour.

A. 1, 2, 3 and 4 are true

B. 1, 3 are true and 2, 4 are false

C. 2, 4 are true and 1, 3 are false

D. 3, 4 are true and 2, 1 are false

Answer: Option A