Table 19-2 Source: US Census Bureau and Mankiw's Calculations

question 112

Essay

Table 19-2 Source: US Census Bureau and Mankiw's calculations
-Refer to Table 19-2. What conclusion can you draw about the changes in the gaps in earnings between skilled and unskilled workers between 1975 and 2011?

---

Definitions:

Variable Costing

Variable costing is an accounting method that only considers variable costs in the calculation of the cost of goods sold, excluding fixed costs.

Net Operating Income

Income derived from normal business operations after subtracting all operating expenses but before interest and taxes.

Absorption Costing

An accounting procedure that integrates all production-related costs, capturing direct material expenses, direct labor costs, and all overheads, variable and fixed, within the cost framework of a product.

Net Operating Income

The amount left from a company's sales revenue after subtracting the costs of running the business, excluding tax and interest expenses.