Which of the Following Could Explain the Growing Gap in Income

question 94

Multiple Choice

Which of the following could explain the growing gap in income between unskilled and skilled workers in the United States?

• A) International trade has increased the domestic demand for skilled labor and decreased the domestic demand for unskilled labor.
• B) Certain technological changes such as the introduction of computers have increased the domestic demand for skilled labor and decreased the domestic demand for unskilled labor.
• C) Both a and b are correct.
• D) Neither a nor b is correct.