Economists Who Attempt to Explain the Increasing Earnings Gap Between

question 284

Multiple Choice

Economists who attempt to explain the increasing earnings gap between skilled and unskilled workers in the United States offer two main hypotheses.Both hypotheses

• A) suggest that demand and supply conditions have played a less important role in determining workers' wages in recent years.
• B) suggest that, over time, the demand for skilled labor has risen relative to the demand for unskilled labor.
• C) emphasize the shrinking importance of international trade in recent years.
• D) emphasize the growing importance of women and teenagers in the workforce in recent years.

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Definitions:

Wage and Salary Surveys

Research studies that collect and analyze data on the compensation paid to employees in various positions and industries.

Key Jobs

Positions that are critical for the operation and success of a business due to their unique responsibilities or specialized skill requirements.

Pay Grade

A level or step within a compensation system that determines the pay range for employees based on their job role, skills, or experience.

Setting of Wages

The determination of how much compensation employees receive for their labor, influenced by factors such as skill level, industry standards, and economic conditions.