The Widget Industry Is Perfectly Competitive and Produces 1000 Widgets

question 23

Multiple Choice

The widget industry is perfectly competitive and produces 1000 widgets.Currently,it takes one unit of skilled labor and two units of unskilled labor to produce one widget.Technological change then increases the productivity of skilled labor only.Afterward,the total employment of skilled workers goes up.Which of the following is consistent with this result? ________ units of skilled workers and two units of unskilled labor are needed to produce one widget and total output is ________ widgets.

• A) 0.75; 1100
• B) 1.25; 1600
• C) 1.25; 1100
• D) 0.75; 1600

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Definitions:

Psychological Facts

refer to interesting and often surprising details or findings from the field of psychology about how people think, feel, and behave.

Valence

in psychology, refers to the intrinsic attractiveness (positive valence) or averseness (negative valence) of an event, object, or situation.

Importance

The quality of being significant or valuable in a particular context or to a particular individual or group.

Social Learning Theory

A theory that suggests that people can learn new behaviors and attitudes through observing the actions of others and the outcomes of those actions.