Correct Answer: The increase in demand for skilled workers due to technological advancements

Solution : The correct answer is (a) The increase in demand for skilled workers due to technological advancements.

Skill-biased technological change refers to a situation where technological advancements and changes in production methods create a greater demand for workers with higher levels of skills and education. As technology advances, certain tasks become automated or require more specialized skills, leading to an increased demand for workers who possess those skills. This can result in a higher wage premium for skilled workers compared to unskilled workers.