Question 1

High-skilled workers earn more than low-skilled workers in part because

Accepted Answer

High-skilled workers earn more because their higher value of marginal products makes them more valuable to employers, leading to higher wages.

Question 2

In recent years, information technology such as computers and scanners have been a ________ for low-skilled labor and have led to ________ wage rates for low-skilled workers.

Accepted Answer

Information technology such as computers and scanners have been a substitute for low-skilled labor, meaning that they can perform the same tasks as low-skilled workers. This has led to lower wage rates for low-skilled workers, as employers can now hire fewer workers to do the same amount of work.

Question 3

Suppose there are two types of labor, high skilled and low skilled. The demand curve for high skilled labor lies ________ the demand curve for low skilled labor and the supply curve of high skilled labor lies ________ the supply curve of low skilled labor.

Accepted Answer

The demand curve for high skilled labor lies above the demand curve for low skilled labor because high skilled labor is generally more productive and thus more valued by employers. The supply curve for high skilled labor lies above the supply curve for low skilled labor because there are typically fewer high skilled workers available, making them more scarce and thus more expensive.

Question 4

Information technologies ________ the demand for low-skilled labor, increase the ________ high-skilled labor, lower the wage rate of ________ labor, and raise the wage rate of ________ labor.

Accepted Answer

Information technologies often automate tasks performed by low-skilled labor, decreasing demand for them, while increasing demand for high-skilled labor to manage and develop these technologies. This typically lowers wages for low-skilled labor and raises wages for high-skilled labor.

Question 5

High skilled labor and information technology are ________ while low skilled labor and information technology are ________.

Accepted Answer

High skilled labor and information technology are complements because technology can enhance the productivity of skilled workers. Low skilled labor and information technology are substitutes because technology can often replace low-skilled tasks.

Question 6

Because skills are costly to obtain, at a given wage rate, the

Accepted Answer

The answer of Because skills are costly to obtain, at...

Question 7

Information technologies are a ________ for low-skilled labor and a ________ for high-skilled labor.

Accepted Answer

Information technologies often replace low-skilled labor (substitute) by automating tasks, while they enhance the productivity of high-skilled labor (complement) by providing advanced tools and capabilities.

Question 8

Relative to the demand curve for low-skilled workers, the demand curve for high-skilled workers lies

Accepted Answer

The demand curve for high-skilled workers lies to the right because high-skilled workers are generally more productive and in higher demand, leading to a greater quantity of labor demanded at each wage level compared to low-skilled workers.

Question 9

The wage rate for high-skilled labor is higher than that for low-skilled labor because

Accepted Answer

The wage rate is higher for high-skilled labor because there is greater demand for it and a smaller supply compared to low-skilled labor, leading to higher wages.

Question 10

Welding has changed dramatically over the last decade with more welding jobs dependent on the use of computers. Computers are a complement only for high-skilled welders, so as more welding companies buy computers the wages of high-skilled welders will ________ and the wages of low-skilled welders will ________.

Accepted Answer

As computers complement high-skilled welders, their productivity and demand increase, leading to higher wages. Conversely, low-skilled welders may see reduced demand and wages as their skills become less relevant.

Question 11

One possible reason the U.S. income distribution has become more unequal is

Accepted Answer

Information technology has increased the demand for skilled labor, reducing the demand for unskilled labor, contributing to income inequality.

Question 12

The demand curve for high-skilled labor lies to the right of the demand curve for low-skilled labor because

Accepted Answer

High-skilled labor is more productive, leading to a higher demand for such workers, which shifts the demand curve to the right compared to low-skilled labor.

Question 13

Welding has changed dramatically over the last decade with more welding jobs dependent on the use of computers. This change increased the demand for welders with computer skills and decreased the demand for welders who lack these skills and is an example of when technology is a ________ to a high-skilled job and a ________ to a low-skilled job.

Accepted Answer

Technology acts as a complement to high-skilled jobs by enhancing their capabilities, while it substitutes low-skilled jobs by replacing them with automated processes.

Question 14

Computers and laser scanners are ________ for low-skilled labor and ________ for high-skilled labor. The introduction of these technologies ________ the wage rate of high-skilled workers and ________ the wage rate of low-skilled workers.

Accepted Answer

The answer of Computers and laser scanners are ________ for...

Question 15

Because of their higher value of marginal product

Accepted Answer

High-skilled workers have a higher value of marginal product, which means they are more productive and valuable to employers. This increased productivity shifts the demand curve for high-skilled workers to the right compared to low-skilled workers, indicating a higher demand at each wage level.

Question 16

The demand curve for low-skilled labor lies to the left of the demand curve for high-skilled labor because

Accepted Answer

High-skilled workers are generally more productive, which increases the demand for them compared to low-skilled workers.

Question 17

The supply curve for high-skilled labor lies to the

Accepted Answer

The supply curve for high-skilled labor is to the left of the supply curve for low-skilled labor because acquiring skills is costly and time-consuming, resulting in a smaller supply of high-skilled workers compared to low-skilled workers.

Question 18

The distribution of income in the United States became more unequal in the 1990s. One explanation for this trend is that advances in information technologies have ________ low-skilled labor and ________ high-skilled labor.

Accepted Answer

Advances in information technologies have increased the demand for high-skilled labor due to the need for specialized skills to operate and innovate with new technologies, while decreasing the demand for low-skilled labor as automation and technology can replace routine tasks.

Question 19

Relative to the supply curve of high-skilled workers, the supply curve of low-skilled workers is

Accepted Answer

The supply curve of low-skilled workers is typically to the right of the supply curve of high-skilled workers because there is generally a larger supply of low-skilled workers in the labor market.

Question 20

The median wage among physicians is over $166K a year, while the median salary for physician assistants is $86K a year. These salaries suggest that physicians have ________ human capital than physician assistants and hence the demand for labor for physicians is ________ than the demand for labor for physician assistants.

Accepted Answer

Physicians typically have more human capital due to their extensive education and training, leading to higher wages and greater demand for their specialized skills compared to physician assistants.

Quiz 19: Economic Inequality

High-skilled workers earn more than low-skilled workers in part because

In recent years, information technology such as computers and scanners have been a for low-skilled labor and have led to wage rates for low-skilled workers.

Suppose there are two types of labor, high skilled and low skilled. The demand curve for high skilled labor lies the demand curve for low skilled labor and the supply curve of high skilled labor lies the supply curve of low skilled labor.

Information technologies the demand for low-skilled labor, increase the high-skilled labor, lower the wage rate of labor, and raise the wage rate of labor.

High skilled labor and information technology are while low skilled labor and information technology are .

Because skills are costly to obtain, at a given wage rate, the

Information technologies are a for low-skilled labor and a for high-skilled labor.