The Gap Between Rich and Poor Widened in the 1980s

question 17

Multiple Choice

The gap between rich and poor widened in the 1980s and 1990s for all of the following reasons except

• A) intensifying global economic competition.
• B) the decline of labor unions.
• C) tax policies of the Carter and Clinton administrations.
• D) the shrinking number of unskilled manufacturing jobs.
• E) the greater economic rewards for education.

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Definitions:

Final Customer

The end user or consumer who purchases a product or service for personal use and not for resale or further processing.

Homeshoring

A practice where businesses hire employees to work from home or a remote location rather than in a traditional office setting, often used as an alternative to offshoring.

Reshoring

The process of bringing back manufacturing and services to a country from overseas to strengthen the local economy and reduce reliance on foreign suppliers.

Minimum Efficient Scale

The smallest production quantity at which the long-run, total average cost is minimized.