ECONOMICS
INCOME DISTRIBUTION
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Are low skilled
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Work in industries where there is excess supply of staff
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Have high levels of skills
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Work in industries where there is low demand for their skills
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Detailed explanation-1: -Experience and skill. Often, the longer you do a job, the more productive you become. As a result, experienced workers usually earn more than beginners. Workers who have in-demand skills also may earn more.
Detailed explanation-2: -Answer and Explanation: The answer is: d. The supply of skilled workers is relatively less. Based on the law of demand and supply, the price of skilled labor is higher than unskilled labor because there’s less of it.
Detailed explanation-3: -The allocation of ability across occupations is important because higher ability workers are generally more productive and therefore more likely to be employed. If higher ability workers are more likely to choose one occupation over another, this affects employment inequality.
Detailed explanation-4: -Skill-based pay is a salary system that determines an employee’s pay based on his or her knowledge, experience, education or specialized training. Depending on the company, the employee might also receive a higher salary for earning formal certification in his or her industry.