In Order to Explain the Changing Gap in Earnings Between

question 100

Multiple Choice

In order to explain the changing gap in earnings between skilled and unskilled workers in recent years, economists have proposed two hypotheses. One hypothesis emphasizes

• A)compensating differentials.
• B)the increased recognition that a larger stock of human capital usually leads to higher earnings.
• C)the decreasing importance of labor unions.
• D)the increasing importance of international trade.

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Definitions:

Unwed Individuals

People who are not legally married or part of a matrimonial union.

Romantic Partners

Individuals involved in a romantic relationship with each other.

Homogamy

The practice or trend of selecting a life partner who is socially, economically, and culturally similar to oneself.

Propinquity

The proximity or physical closeness between people or places, influencing their likelihood of interaction.