The average years of schooling of workers in Argonia has increased.Which of the following is likely to be true if all other variables remain unchanged?
A) The efficiency units of labor in Argonia is likely to increase.
B) The income per worker in Argonia is likely to decrease.
C) The unemployment rate in Argonia is likely to increase.
D) The price level in Argonia is likely to decrease.

Question

Quizplus · Accepted Answer

When the average years of schooling of workers increase, it is likely that their skills and knowledge also increase. This will lead to an increase in the productivity and efficiency of workers, resulting in higher efficiency units of labor. Therefore, choice A is the best answer. The other choices are unlikely to be affected by an increase in the average years of schooling.

The Average Years of Schooling of Workers in Argonia Has