In Recent Years, the Increasing Relative Wage of Skilled Labour

question 17

Multiple Choice

In recent years, the increasing relative wage of skilled labour has been mostly due to:

• A) government laws promoting the hiring of skilled labour.
• B) government subsidies provided to college students.
• C) a decrease in the supply of, and increase in the demand for, skilled labour.
• D) an increase in the demand for skilled labour that exceeds the increase in supply.
• E) a decrease in the supply of skilled labour that exceeds the decrease in demand.

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Definitions:

Producer Surplus

The difference between what producers are willing to receive for a good compared to what they actually receive, essentially the profit.

Price Rises

An increase in the cost of goods or services, often due to factors such as inflation, increased production costs, or higher demand.

Existing Producers

Companies or individuals that are currently producing and selling goods or services within a market.

Consumer Surplus

The discrepancy between what consumers are prepared and able to spend on a good or service and the actual amount they end up paying.