Homework Clinic
Social Science Clinic => Economics => Topic started by: tiffannnnyyyyyy on Jun 29, 2018
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Which of the following is an example of human capital?
A) a computer B) a college education
C) a factory building D) a software program
Question 2
Explain why it might be necessary in some circumstances for firms to pay workers wages that are higher than the legislated minimum wage even for jobs requiring low skills.
What will be an ideal response?
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Answer to Question 1
B
Answer to Question 2
The reason is that in some labor markets the available labor supply may be relatively tight due to demographics or an otherwise booming economy or it may be that the demand for low-skilled workers is high relative to the available labor supply.