Author Question: High-skilled workers earn more than low-skilled workers in part because A) high-skilled workers ... (Read 217 times)

itsmyluck · **on:** Jun 29, 2018

High-skilled workers earn more than low-skilled workers in part because

A) high-skilled workers have higher value of marginal products.
B) of government legislation.
C) the supply of high-skilled workers is more elastic.
D) the demand for high-skilled workers is more elastic.

Question 2

The table above shows the marginal benefit that arises from providing police protection in an economy of two people, Paul and Art. Police protection is a public good.

a) Construct a table of the economy's marginal social benefit from providing police protection.
b) What is the economy's marginal social benefit from having 3 police cars on duty?

billybob123 · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

A

Answer to Question 2

Quantity
(cars on duty) Marginal social benefit
(dollars per car)
1 50
2 40
3 30
4 20
5 10

a) The table showing the economy's marginal social benefit from providing police protection is above. At each quantity, the marginal social benefit is the sum of Paul's marginal benefit plus Art's marginal benefit.
b) The marginal social benefit from having three cars on duty is 90.