The following figures show the demand (D) and supply (S) curves of micro and macro economists.Figure 16.6

-A wage differential between skilled and unskilled workers exists because skilled workers have higher marginal products than unskilled workers.

Question

The following figures show the demand (D) and supply (S) curves of micro and macro economists.Figure 16.6
 
-A wage differential between skilled and unskilled workers exists because skilled workers have higher marginal products than unskilled workers.

Quizplus · Accepted Answer

The wage differential between skilled and unskilled workers exists because of the difference in their marginal productivity. Skilled workers have higher marginal products than unskilled workers, which results in a higher wage rate for skilled workers.

The Following Figures Show the Demand (D) and Supply (S)