Suppose that the government implements a new policy that provides free skills training to all low-skilled workers, which makes them more productive and turns them into high-skilled workers. This will _______ the supply of low-skilled workers and _______ the supply of high-skilled workers.

Question

Quizplus · Accepted Answer

The policy would decrease the supply of low-skilled workers because they are being trained and thus leaving the low-skilled labor market. Simultaneously, it would increase the supply of high-skilled workers as these individuals are now more skilled and entering the high-skilled labor market.

Suppose That the Government Implements a New Policy That Provides