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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Definitions:

Ownership Percentage

The share or portion of ownership an individual or entity holds in an asset or business, usually represented as a percentage.

Raw Materials

Unfinished goods or materials consumed in the manufacturing process to create a final product.

Currency Exchange Rates

The worth of a currency in exchange for a different currency.

Equivalent Amount

The equal value of currency or expression of a sum in a different form or denomination, maintaining its value.