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:

Contract

A legally enforceable agreement between two or more parties with mutual obligations.

Terminated

Ended or concluded, often referring to the cessation of employment, contracts, or legal agreements.

Obligations

Duties or responsibilities imposed by law, contract, or one's conscience.

Discharged

Released or freed from a legal, financial, or other obligation.