Why Do Skilled Workers Earn Relatively Higher Wages Than Unskilled

question 12

Multiple Choice

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)There is an abundant supply of unskilled workers.

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Definitions:

Cost Incurrence

The moment when a company or individual recognizes a financial obligation or expense through the receipt of goods or services.

Responsibility Level

An organizational unit or position that has a specific set of duties and responsibilities for which they are accountable.

Indirect Costs

Expenses not directly associated with the production of goods or services, such as administration and rental costs.

Allocated Costs

Allocated costs refer to the systematic distribution of fixed and variable expenses to various departments or sectors of a business.