Answered: Education determines the skill of the…

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter19: Earnings And Discrimination

Section: Chapter Questions

Problem 9PA

See similar textbooks

Related questions

Question

In California, researchers found, it really matters where you live. Residents of Silicon Valley live more than four years longer than the average American, earn nearly double the income, and have nearly triple the number of graduate degrees. Residents of Central Valley live nearly a year less than average American, earn barely more than a poverty-line income, and nearly four in ten failed to graduate from high school.

Explain how the labor markets of California translate education differences into earnings differences.

Education determines the skill of the worker. High-skilled workers _______ compared to low-skilled workers, so the ______ high-skilled workers exceeds that for low-skilled workers.

a. earn a higher wage rate; supply of

b. earn a higher wage rate; demand for

c. have a higher marginal product; demand for

d. have a greater value of marginal product; demand for

e. have a greater value of marginal product; supply of

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Recommended textbooks for you

Principles of Microeconomics

Economics

ISBN:

9781305156050

Author:

N. Gregory Mankiw

Publisher:

Cengage Learning