The Figures Given Below Show the Demand (D)and Supply (S)

question 87

Multiple Choice

The figures given below show the demand (D) and supply (S) curves of labor in two different markets.Figure 16.3

-Why do skilled workers earn relatively higher wages than unskilled workers?

• A)The marginal productivity of skilled workers is low.
• B)The marginal cost of hiring skilled workers is low.
• C)The supply of skilled workers is relatively less.
• D)There is an abundant supply of skilled workers.
• E)The marginal cost of hiring unskilled workers is high.

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Definitions:

Additional Costs

Expenses that are not initially accounted for in the budget or pricing but arise during the execution of a project or the production of goods.

Marginal Analysis

Marginal analysis refers to the examination of the benefits and costs of a small (marginal) change in the production, consumption, or allocation of resources.

Ceteris Paribus

A principle in economics that states other conditions remain constant while one variable changes.

Marginal Benefit

The additional satisfaction or value gained from consuming or producing one more unit of a good or service.