Which of the following is a reason why the wage rate of ...

[tichca]

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

[tennis14576]

Answer to Question 1

B

Answer to Question 2

D