Identify the correct statement about the supply of labor in the U.S.economy.
A)The supply of less-educated workers has increased more than the supply of more-educated workers, thus increasing the rewards of education.
B)Immigration has decreased the supply of relatively less-educated workers, thus increasing wages.
C)Immigration has increased the supply of relatively less-educated workers, thus increasing the wage rates.
D)Computer-controlled machinery has substituted low-skilled workers in the manufacturing process, thus increasing their wages.
E)Technological change has benefited only low-skilled, less-educated workers, at the cost of highly skilled, highly educated workers.

Question

Quizplus · Accepted Answer

According to research, the supply of less-educated workers has increased more than the supply of more-educated workers, leading to an increase in the rewards of education. This is because as the supply of less-educated workers increases, the demand for more-educated workers also increases, leading to higher wages for those with higher levels of education.

Identify the Correct Statement About the Supply of Labor in the U.S.economy