In Order to Explain the Widening Gap in Earnings Between

question 353

Multiple Choice

In order to explain the widening 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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