A "Technology" Hypothesis Has Been Advanced as an Explanation for the Widening

question 257

Multiple Choice

A "technology" hypothesis has been advanced as an explanation for the widening earnings gap between skilled and unskilled workers in the United States.This hypothesis emphasizes the likelihood that technological advances have

• A) increased the supply of both skilled and unskilled workers.
• B) increased the supply of skilled workers and decreased the supply of unskilled workers.
• C) increased the demand for skilled workers and decreased the demand for unskilled workers.
• D) decreased the demand for both skilled and unskilled workers.

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Definitions:

Collateral

Collateral refers to assets that a borrower offers to a lender to secure a loan. If the borrower defaults, the lender can seize the collateral to recover the loaned amount.

Fixed-Rate Mortgage

A mortgage with an interest rate that remains constant throughout the life of the loan.

Acceleration Clause

A contract provision that allows a lender to require a borrower to repay all of an outstanding loan if certain agreed upon conditions are not met.

Market Value

The price at which an asset would trade in a competitive auction setting, reflecting what a willing buyer would pay a willing seller.