The Demand Curve for High-Skilled Workers Lies to the Right

question 275

True/False

The demand curve for high-skilled workers lies to the right of the demand curve for low-skilled workers because of the higher productivity of high-skilled workers.

---

Definitions:

Market Efficiency

A financial theory stating that asset prices fully reflect all available information, making it impossible to consistently achieve higher returns.

Efficient Capital Market

Market in which security prices reflect available information.

Security Prices

The cost or price of financial instruments such as stocks, bonds, and derivatives, determined by market supply and demand.

Compound Return

The process by which an investment grows over time as earnings from both the principal and the accumulated earnings from preceding periods.