Figure 9.2 Equilibrium in Markets for Low- and High-Skill Labor(a) (B)

question 25

Multiple Choice

Figure 9.2
Equilibrium in Markets for Low- and High-Skill Labor(a) (b)

-According to figure 9.2 the wage for high skilled labor WH is higher than the wage for unskilled WL workers because:

• A) Unskilled workers are less productive and more scarce
• B) High skilled workers are less productive and more abundant
• C) High skill workers are more productive and more scarce
• D) Unskilled workers are more productive and more scarce

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Definitions:

Alternative Hypothesis

The hypothesis in a statistical test that proposes a difference or effect, opposing the null hypothesis, and is considered true if the null hypothesis is rejected.

Alternative Hypothesis

A statement that proposes a new theory or relationship, typically suggesting that there is a statistically significant effect or association between variables.

P-value

The likelihood of achieving outcomes as significant as, or more so than what was actually observed in the study, assuming the null hypothesis is true.

Alternative Hypothesis

A hypothesis that contradicts the null hypothesis, proposed when the null hypothesis is expected to be rejected.