What Is Meant by the Skill-Bias Technological Explanation of Increasing

question 24

Multiple Choice

What is meant by the skill-bias technological explanation of increasing inequality?

• A) There has been increasing inequality over the last 40 years because unskilled workers use no technology.
• B) There has been increasing inequality over the last 40 years among high-skilled workers.
• C) Inequality has increased because technological advances have not kept pace with the demand for education.
• D) Inequality has increased because technological advances over the last 40 years have complemented the productivity of skilled labor relative to unskilled labor.
• E) Inequality has increased because technological advances over the last 40 years have complemented the productivity of unskilled labor relative to foreign labor.

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Definitions:

Inflation Rate

The percentage increase in the general level of prices for goods and services in an economy over a period of time.

Aggregate Supply

The aggregate amount of products and services created in an economy at a specific price level during a particular time frame.

Adverse Supply Shock

An unexpected event that suddenly decreases the supply of a product or service, resulting in increased prices and reduced quantity.

Prices

The amount of money required to purchase a good, service, or asset, often influenced by supply and demand.