Use the Figure Below to Answer the Following Questions

question 48

Multiple Choice

Use the figure below to answer the following questions.

Figure 19.3.5
-Refer to Figure 19.3.5. This figure shows the labour supply curves and the value of marginal product curves for high-skilled and low-skilled workers. If there is an increase in the supply of high-skilled workers and the supply of high-skilled workers is now equal to the supply of low-skilled workers, then

• A)wages paid to high-skilled workers would fall to $4 an hour.
• B)wages paid to high-skilled workers would fall to $5 an hour.
• C)wages paid to high-skilled workers would fall to $6 an hour.
• D)there would be no change in the wages of high-skilled workers, because high-skilled workers always earn more than low-skilled workers.
• E)there would be no change in the wages of high-skilled workers, because their value of marginal product is unchanged.

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Definitions:

Fishery Collapse

A rapid decline in a fishery’s population because its fish are being harvested faster than they can reproduce.

Harvesting Rates

The speed at which natural resources are extracted or harvested, impacting sustainability and future availability.

Reproduction

The biological process by which new individual organisms are produced.

ITQ

Individual Transferable Quotas (ITQs) are a tool in fishery management that allocate a specific portion of the total allowable catch to individual fishermen or companies.