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.

---

Definitions:

Opportunity Cost

Opportunity cost represents the value of the best alternative that is foregone when making a choice, highlighting the trade-offs involved in any decision.

Loads of Laundry

Quantity of laundry being washed and dried in a single operation or cycle.

Opportunity Cost

The cost of forgoing the next best alternative when a choice is made, representing the benefits one misses out on.

Comparative Advantage

The ability of an individual or entity to produce a good or service at a lower opportunity cost than others.