Which of the Following Could Explain the Changing Gap in Income

question 31

Multiple Choice

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

• A)International trade has decreased the domestic demand for skilled labor and increased 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.

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Definitions:

Interval Variables

Variables which not only have an order but also a precise numerical distance between their values, similar to interval data but in a context emphasizing variable types.

Normal Distributions

This probability distribution is defined by its symmetrical structure around the mean, revealing that data points closer to the mean have greater frequencies than those positioned further away.

Wilcoxon Rank

A non-parametric statistical test that compares two paired groups, based on ranking the differences between pairs and used when the data does not necessarily conform to a normal distribution.

Null Hypothesis

A hypothesis that assumes no significant difference or effect, serving as a default position until evidence indicates otherwise.