As the relative demand for unskilled workers falls, wages for unskilled workers ______ and unemployment compensation becomes a ______ attractive option.
A) fall; more
B) fall; less
C) rise; more
D) rise; less

Question

Quizplus · Accepted Answer

When the demand for unskilled workers decreases, their wages tend to fall because employers value their labor less. As wages decrease, unemployment compensation becomes relatively more attractive since the difference between working and not working wages narrows.

As the Relative Demand for Unskilled Workers Falls, Wages for Unskilled