If Skilled and Unskilled Labor Are Gross Substitutes and If

question 16

Multiple Choice

If skilled and unskilled labor are gross substitutes and if an influx of unskilled immigrants drives down the wages paid to unskilled workers,it will also

• A) increase the wage of skilled workers.
• B) decrease the wage of skilled workers.
• C) either increase or decrease the wage of skilled workers.
• D) cause no change in the wage of skilled workers.

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