A skill-biased technological change
A)increases the MPN of unskilled workers,but reduces the MPN of skilled workers.
B)changes the MPN of unskilled and skilled workers proportionately.
C)increases the MPN of skilled workers,but reduces the MPN of unskilled workers.
D)is a main cause of unemployment.

Question

Quizplus · Accepted Answer

Skill-biased technological change favors those with higher levels of education and advanced skills, which increases the marginal product of skilled workers and reduces the marginal product of unskilled workers. Therefore, the correct answer is C.

A Skill-Biased Technological Change