What is the most accurate description of skilled and unskilled workers if labor supply curves are not perfectly inelastic (perfectly vertical)?
a. If the two types are complements, then the increases in immigration during the late 1800s would have increased the quantity and wages of skilled workers and decreased the wages of unskilled workers.
b. If the two types are substitutes, then the increases in immigration during the late 1800s would have increased the quantity and wages of skilled workers and decreased the wages of unskilled workers.
c. If the two types are complements, then the increases in immigration during the late 1800s would have increased wages of skilled workers, decreased the number of skilled workers, and decreased the wages of unskilled workers.
a. If the two types are complements, then the increases in immigration during the late 1800s would have increased the quantity and wages of skilled workers and decreased the wages of unskilled workers.
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If there is unrest in the Middle East, and Saudi Arabian investors purchase German securities, the
A) demand for Saudi Arabian currency will fall. B) demand for Saudi Arabian currency will rise. C) supply of Saudi Arabian currency will fall. D) supply of Saudi Arabian currency will rise.
Always Round Tire has a production function of Q = 300 L.75 K.5. If Always Round Tire doubles the size of its production facility-increasing L from 250 to 500 and K from 25 to 50 -what happens to the cost of production, even though we do not know the wages of labor or the price of capital?
What will be an ideal response?