Large Disparities in Wages Could Possibly Result from All but Which

question 12

Multiple Choice

Large disparities in wages could possibly result from all but which one of the following?

• A) parental investment in a child's human capital
• B) increases in the amount of middle-class jobs
• C) skill-biased technological change
• D) globalization
• E) an increase in the demand for highly skilled labor

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Definitions:

State Unemployment Credit

A tax credit offered to employers by the state, related to unemployment insurance payments.

FUTA Purposes

Relates to the Federal Unemployment Tax Act, which imposes a payroll tax on businesses to fund state workforce agencies.

Federal Income Tax

This is a tax levied by the U.S. federal government on the annual earnings of individuals, corporations, trusts, and other legal entities.

Withholding Allowances

Claims made on an employee's W-4 form that determine the amount of federal income tax withheld from their paycheck.