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

question 80

Multiple Choice

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

-Which of the following statements is true?

• A)Income earned by a worker with a college degree grows more rapidly than a worker without a college degree during their early working years.
• B)A worker with a college degree always earns less than a worker without a college degree.
• C)A worker with a college degree always earns more than a worker without a college degree.
• D)A worker without a college degree initially earns more than a worker with a college degree but the latter surpasses the former in due course of time.
• E)Both the workers earn equal incomes after a certain period of time.

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Definitions:

Increase in Income

An upward movement in earnings or revenue, signaling growth or improvement in financial performance.

Variable Cost

A cost that changes in proportion with the level of output or activity; in contrast to fixed costs, which remain constant regardless of activity.

Transfer Price

The price at which goods or services are transferred between departments or divisions within the same company.

Increase in Income

A rise in the amount of money received, especially by a business or individual, over a certain period.