The Introduction of Word Processing Software That Increases the Demand

question 121

Multiple Choice

The introduction of word processing software that increases the demand for workers with computer skills relative to those without such skills is an example of:

• A)increasing reservation prices.
• B)skill-biased technological change.
• C)the diminishing marginal product of labor.
• D)globalization.

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Definitions:

Discount Retailers

Stores that offer products at lower prices by accepting lower margins in return for a high sales volume.

Arbitrage

The practice of taking advantage of price differences between markets to make a profit.

Vertical Contracts

Agreements between firms at different levels in the supply chain (e.g., manufacturer and retailer) to govern the terms of sale or purchase.

Costly Activities

Actions or processes that require a significant amount of resources, such as time, money, or effort.