Supply and Demand of Labor Quick Check

Question

5 of 55 of 5 Items

Question
If your goal is to earn the highest wage possible, which of the following industries has the most favorable characteristics?(1 point)
Responses

A few firms produce a very specialized product. The firms rarely hire new employees, as they require so few.
A few firms produce a very specialized product. The firms rarely hire new employees, as they require so few.

Many firms are producing very popular products, and the simple processes involved in production allow the firms to hire thousands of low-skilled workers.
Many firms are producing very popular products, and the simple processes involved in production allow the firms to hire thousands of low-skilled workers.

There are many firms producing very popular products, but the production process is so technical that properly-trained employees are hard to come by.
There are many firms producing very popular products, but the production process is so technical that properly-trained employees are hard to come by.

A few firms produce a very specialized product, but capital is used instead of labor for much of the production. The firms primarily hire low-skilled workers, if any.

Answer 1

To earn the highest wage possible, the most favorable characteristics would be found in the scenario where:

"There are many firms producing very popular products, but the production process is so technical that properly-trained employees are hard to come by."

This situation creates a higher demand for skilled labor, which typically drives up wages due to the scarcity of qualified workers. In contrast, the other scenarios either involve low demand for workers or a reliance on low-skilled labor, which often leads to lower wages.