If, as Some Economists Believe, Changes in Technology Over Recent

question 103

Multiple Choice

If, as some economists believe, changes in technology over recent decades have brought about changes in labor markets, then those changes likely have resulted in

• A)reduced emphasis on compensating differentials as an explanation for wage differences.
• B)a reduced emphasis on human-capital differences among workers as an explanation for wage differences.
• C)a narrowing of the earnings gap between high-skilled workers and low-skilled workers.
• D)a widening of the earnings gap between high-skilled workers and low-skilled workers.

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Definitions:

Equity Method

An accounting technique used to record investments in which the investor has significant influence over the investee but does not control it outright.

Consolidation

The process of combining financial statements of a parent company with those of its subsidiaries to present as one economic entity.

Ownership Percentage

The share of ownership interest a person or entity holds in a company, typically expressed as a percentage of the outstanding shares.

Acquisition Method

The method used in accounting for assets acquired and liabilities assumed in a business combination.