Use the Figure Below to Answer the Following Question

question 59

Multiple Choice

Use the figure below to answer the following question.

Figure 19.3.3
-Refer to Figure 19.3.3. At any given level of employment for high-skilled and low-skilled workers, the vertical distance between the two supply curves

• A)disappears if there is free entry into the skill market.
• B)disappears if there is equal pay for work of equal value.
• C)is created by discrimination against low-skilled workers.
• D)is the compensation required for the cost of acquiring human capital.
• E)equals the value of marginal product of skill.

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Definitions:

Payroll Taxes

Taxes imposed on employers and employees, based on the wages and salaries paid to workers, used to fund social security and healthcare services.

Negative Externality

A cost that affects a party who did not choose to incur that cost, often resulting from industrial activity, where the negative effects are felt by others, such as pollution.

Public Good

A product that is non-excludable and non-rivalrous, meaning it can be used by many simultaneously without diminishing the product's availability to others.

Private Good

A good, such as pizza, that is both rival in consumption and exclusive.