Holding other factors constant, if the education and skills of the typical worker in an economy increases, then the real wages of workers will ________ and employment of workers will ________.
A)increase; increase
B)increase; decrease
C)decrease; not change
D)decrease; increase

Question

Quizplus · Accepted Answer

If worker quality increases, then more workers are desired because they are more productive. Demand for labor will shift right, increasing wages and employment.

Holding Other Factors Constant, If the Education and Skills of the Typical