D an unskilled worker earns the marginal product of

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d) An unskilled worker earns the marginal product of labor, whereas a skilled worker earns the marginal product of labor and the marginal product of human capital. Using your answers to parts (a) and (b), find the ratio of the skilled wage to the unskilled wage. How does an increase in the amount of human capital affect this ratio? Explain.
=1+L/H Notice that the ratio is always greater than 1 because skilled workers get paid more than unskilled workers. Also, when H increases this ratio falls because the diminishing returns to human capital lower its return, while at the same time increasing the marginal product of unskilled workers. e) Some people advocate government funding of college scholarships as a war of creating a more egalitarian society. Other argue that scholarship help only those who are able to go to college. Do your answers to the preceding questions shed light on this debate?
5. Explain how each of the following events affects the monetary base, the money multiplier, and the money supply. a) The Federal Reserve buys bonds in an open-market operation.

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