Which of the following is a reason why the wage rate of high-skilled workers exceeds the wage rate of low-skilled workers?
A) The market for high-skilled workers is more competitive than the market for low-skilled labor.
B) The demand for high-skilled workers exceeds the demand for low-skilled workers.
C) The number of high-skilled workers exceeds the number of low-skilled workers.
D) Low-skilled workers often are in the process of acquiring more human capital.
Question 2
In the above figure, as Brendan's income falls his consumption bundle moves from point A to point E. This implies that for Brendan, compact discs are ________ good and haircuts are ________ good.
A) a normal; an inferior
B) a normal; a normal
C) an inferior; an inferior
D) an inferior; a normal
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