The diagram below shows the supply and demand for labour in a hypothetical town in northern British Columbia,with only one employer,a logging company.
FIGURE 14- 4
-One attempt to provide some minimum level of human capital for all citizens is a system of

Question

The diagram below shows the supply and demand for labour in a hypothetical town in northern British Columbia,with only one employer,a logging company.
  FIGURE 14- 4
-One attempt to provide some minimum level of human capital for all citizens is a system of

Quizplus · Accepted Answer

The diagram shows that the logging company is the only employer in the town, and they are able to pay low wages due to the abundant supply of unskilled labor. A system of comparable worth would not address the issue of low wages, income taxation would not necessarily provide minimum levels of human capital, minimum wages may not be effective if the employer has significant bargaining power, and unionism may not be feasible in a town with only one employer. Compulsory and publicly financed education, however, can provide all citizens with basic skills and knowledge, increasing their human capital and making them more employable in a wider range of jobs. This can help to shift the demand for labor curve to the right, resulting in higher wages and better working conditions. Therefore, option E is the best choice.

The Diagram Below Shows the Supply and Demand for Labour