Which of the Following Could Explain the Growing Gap in Income

question 94

Multiple Choice

Which of the following could explain the growing gap in income between unskilled and skilled workers in the United States?

• A) International trade has increased the domestic demand for skilled labor and decreased the domestic demand for unskilled labor.
• B) Certain technological changes such as the introduction of computers have increased the domestic demand for skilled labor and decreased the domestic demand for unskilled labor.
• C) Both a and b are correct.
• D) Neither a nor b is correct.

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Definitions:

Legal Right

A benefit conferred upon a person by law, which can be protected and enforced by the legal system.

Consideration

Something of value exchanged between parties in a contract, required for the contract to be legally binding.

Contract Modification

Any change or alteration made to the terms of a contract, agreed upon by all parties involved.

Price Change

The fluctuation in the selling price of goods or services over a period of time.