Why do skilled workers generally earn more than unskilled workers?
A. The demand for unskilled labor is more inelastic than the demand for skilled labor
B. Skilled labor has higher marginal revenue products than unskilled labor
C. The demand for unskilled labor is greater than the demand for skilled labor
D. The supply of skilled labor is greater than the supply of unskilled labor
B. Skilled labor has higher marginal revenue products than unskilled labor
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When the price of tablet devices decreased in the 2010s, there was an increase in the demand for computing apps because tablet devices and computing apps are
A) substitute goods. B) capital goods. C) inferior goods. D) complementary goods.
Suppose the wage rate in a certain industry rises, yet firms hire more workers. The best explanation of this is that labor:
A. demand fell. B. demand increased. C. supply fell. D. supply increased.