Assume That Less Skilled Workers Are in the Lower Half

question 6

Multiple Choice

Assume that less skilled workers are in the lower half of earnings. Which of the following events would cause the 80:20 ratio of incomes to go from 2.0 to 3.0?

• A) a 50% increase in everyone's earnings
• B) a relative decrease in the supply of unskilled workers
• C) a relative decrease in the demand for unskilled workers
• D) an increase in welfare payments causes unskilled workers to leave the work force

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Definitions:

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A syndrome in mental health where there's a persistent somber mood or lack of interest in activities, markedly impacting daily functionality.

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A mental health condition characterized by extreme mood swings that include emotional highs (mania or hypomania) and lows (depression).

Bipolar Disorder

A psychiatric condition characterized by dramatic shifts in mood, from high (mania or hypomania) to low states (depression).