SOLVED

11) Suppose there are two types of labor, high skilled and low skilled. The demand curve for high skilled labor lies ________ the demand curve for low skilled labor and the supply curve of high skilled labor lies ________ the supply curve of low skilled labor. A) above; above B) above; below C) below; below D) below; above 12) 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. 13) The wage rate for high-skilled labor is higher than that for low-skilled labor because A) both the demand for and the supply of high-skilled labor is greater than that for low-skilled labor. B) the demand for high-skilled labor is greater than the demand for low-skilled labor and the supply of high-skilled labor is less than the supply of low-skilled labor. C) the demand for high-skilled labor is less than the demand for low-skilled labor and the supply of high-skilled labor is greater than the supply of low-skilled labor. D) both the demand for and the supply of high-skilled labor is less than that for low-skilled labor. 14) Computers and laser scanners are ________ for low-skilled labor and ________ for high-skilled labor. The introduction of these technologies ________ the wage rate of high-skilled workers and ________ the wage rate of low-skilled workers. A) complements; substitutes; raises; lowers B) substitutes; complements; lowers; raises C) substitutes; complements; raises; lowers D) complements; substitutes; lowers; raises 15) Information technologies are a ________ for low-skilled labor and a ________ for high-skilled labor. A) substitute; substitute B) complement; complement C) substitute; complement D) complement; substitute 16) One possible reason the U.S. income distribution has become more unequal is A) information technology has decreased the demand for unskilled labor. B) information technology has increased the demand for unskilled labor. C) information technology has increased the supply of unskilled labor. D) information technology has decreased the supply of unskilled labor. 17) High skilled labor and information technology are ________ while low skilled labor and information technology are ________. A) complements; substitutes B) substitutes; substitutes C) substitutes; substitutes D) complements; complements 18) Information technologies ________ the demand for low-skilled labor, increase the ________ high-skilled labor, lower the wage rate of ________ labor, and raise the wage rate of ________ labor. A) decrease; demand for; low-skilled; high-skilled B) decrease; supply of; low-skilled; high-skilled C) do not change; supply of; high-skilled; low-skilled D) do not change; demand for; high-skilled; low-skilled 19) The distribution of income in the United States became more unequal in the 1990s. One explanation for this trend is that advances in information technologies have ________ low-skilled labor and ________ high-skilled labor. A) decreased the demand for; increased the demand for B) increased the demand for; decreased the demand for C) decreased the supply of; increased the supply of D) increased the supply of; decreased the supply of 20) In recent years, information technology such as computers and scanners have been a ________ for low-skilled labor and have led to ________ wage rates for low-skilled workers. A) substitute; higher B) substitute; lower C) complement; higher D) complement; lower