Which of the Following Could NOT Increase the Earnings Gap

question 37

Multiple Choice

Which of the following could NOT increase the earnings gap between highly-educated and less-educated workers?

• A) a faster increase in the demand for highly-educated workers than for less-educated workers
• B) a faster increase in the supply of highly-educated workers than of less-educated workers
• C) a decrease in the demand for less-educated workers
• D) a decrease in the average strength of unions

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Definitions:

Direct Labor-hour

A measure of the work input in terms of hours spent by workers directly involved in the manufacturing process.

Cash Disbursements

The outflow of cash for expenses, including paying bills, employees, and suppliers, among others.

Direct Labor-hours

The sum of working hours of employees directly contributing to the production activities.

Cash Disbursements

Payments made in cash by a business, including operating expenses, purchasing of assets, and other financial activities.