Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
It decreases labor supply and creates a surplus of jobs.
B
It increases labor supply and leads to higher wages for skilled workers.
C
It decreases labor supply while decreasing wages across all job sectors.
D
It has no effect on labor supply but improves job market stability.
Understanding the Answer
Let's break down why this is correct
Answer
An increase in human capital means that workers have better skills, education, and training. This improvement makes them more productive and valuable to employers, which can lead to higher wages. As workers become more skilled, they are often more willing to enter the labor market, increasing the overall labor supply. For example, if many people in a community take courses to learn new technology skills, more of them may seek jobs in tech, shifting job market trends toward higher demand for tech-related positions. Ultimately, this creates a more dynamic economy where businesses can grow and innovate due to a well-trained workforce.
Detailed Explanation
When people gain more skills and education, they can do more jobs. Other options are incorrect because Some might think that more skills mean fewer jobs; This option suggests that more skills lead to fewer jobs and lower pay.
Key Concepts
labor supply
human capital
job market trends.
Topic
Labor Market Dynamics
Difficulty
hard level question
Cognitive Level
understand
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