The higher the cost of acquiring skills, the ________ are the high-skilled and low-skilled labour ________ curves.

Question

Quizplus · Accepted Answer

When the cost of acquiring skills is high, fewer workers are able to afford or have access to the training necessary to acquire those skills. This results in a smaller pool of high-skilled workers, which leads to higher wages and a steeper supply curve for high-skilled labour. On the other hand, the larger pool of low-skilled workers results in lower wages and a flatter supply curve for low-skilled labour. Therefore, the curves are further apart.

The Higher the Cost of Acquiring Skills, the ________ Are