-In the Above Figure, an Innovation That Increases the Demand

question 184

Multiple Choice

-In the above figure, an innovation that increases the demand for high-skilled workers and decreases the demand for low-skilled workers will

• A) reduce the amount by which W_H exceeds W_L.
• B) increase the amount by which W_H exceeds W_L.
• C) shift the S_H curve leftward.
• D) shift the S_L curve rightward.

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Definitions:

Taxes on Labor

Financial charges imposed by governments on workers' income, salaries, and wages.

Elderly

Individuals who are significantly beyond the usual age for retirement, often implying an age at which they receive certain societal or economic benefits like pensions.

Deadweight Loss

An economic inefficiency arising when there's a failure to attain or an impossibility of attaining equilibrium for a particular good or service.

Taxes on Labor

Refers to taxes imposed on wages or salaries earned, impacting the net income of employees.