In recent years, the increasing relative wage of skilled labour has been mostly due to:
A) government laws promoting the hiring of skilled labour.
B) government subsidies provided to college students.
C) a decrease in the supply of, and increase in the demand for, skilled labour.
D) an increase in the demand for skilled labour that exceeds the increase in supply.
E) a decrease in the supply of skilled labour that exceeds the decrease in demand.

Question

Quizplus · Accepted Answer

The increasing relative wage of skilled labour is due to an increase in the demand for skilled labour that exceeds the increase in supply. This can be attributed to factors such as technological advancement, globalization, and an emphasis on higher education and specialized skills in the workforce.

In Recent Years, the Increasing Relative Wage of Skilled Labour