Economists Who Attempt to Explain the Increasing Earnings Gap Between

question 113

Multiple Choice

Economists who attempt to explain the increasing earnings gap between skilled and unskilled workers offer two main hypotheses:

• A)one hypothesis emphasizes education, and the other emphasizes compensating differentials.
• B)one hypothesis emphasizes education, and the other international trade.
• C)one hypothesis emphasizes international trade, and the other emphasizes technology.
• D)one hypothesis emphasizes technology, and the other emphasizes compensating differentials.

---

Definitions:

Gender

Social and cultural distinctions and roles associated with being male, female, or a different gender, going beyond mere biological or physiological differences.

Prosumption Theory

A concept in consumer studies that blurs the distinction between production and consumption, indicating that consumers increasingly participate in the production of the goods or services they consume.

Production

pertains to the processes and methods involved in the creation of goods and services.

Consumption

The use of goods and services by households or individuals, viewed as an economic activity and a component of economic systems.