One Hypothesis to Explain the Changing Gap in Wages Between

question 201

True/False

One hypothesis to explain the changing gap in wages between unskilled and skilled workers in the United States is that international trade has altered the relative demands for skilled and unskilled workers.

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Definitions:

Variable Cost

Costs that change in proportion to the good or service that a business produces.

Profit

The financial gain obtained when the revenue from selling goods or services exceeds the total cost of producing them.

Fixed Costs

Costs that remain constant regardless of a business's operational levels, including rent, salaries, and loan repayments.

Break-Even Point

The point at which total costs and total revenues are equal, resulting in no gain or loss for the business.