High-skilled workers earn more relative to low-skilled workers because the demand for high-skilled workers is ________ that for low-skilled workers and the supply is ________ that for low-skilled workers.

Question

Quizplus · Accepted Answer

The statement implies that high-skilled workers have a greater demand than low-skilled workers and a lower supply than low-skilled workers. This leads to higher wages for high-skilled workers compared to low-skilled workers. Choice C reflects the correct order of demand and supply, i.e., demand is greater for high-skilled workers than low-skilled workers and supply is lower for high-skilled workers than low-skilled workers.

High-Skilled Workers Earn More Relative to Low-Skilled Workers Because the Demand