The Increase in Wage Inequality Has Been More Rapid in the United

question 8

Multiple Choice

The increase in wage inequality has been more rapid in the United States than in other industrialized countries for all the following reasons EXCEPT

• A) the supply of skilled workers has grown less quickly in the United States.
• B) wage determination is more decentralized in the United States.
• C) unskilled workers are retrained more quickly in the United States.
• D) unemployment rates among unskilled workers have risen more rapidly in other countries.

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Definitions:

Demand Curve

A graph showing how the quantity demanded of a good or service varies with its price.

Elastic

A characteristic of a good or service where its demand or supply changes significantly when its price changes.

Average Costs

The total costs of production (fixed and variable) divided by the total quantity of output produced.

Central Planning Model

A system of economy where all choices regarding the creation and use of goods and services are made by the government.