Between 1976 and 2010, Income Inequality in Canada Has Increased

question 124

Multiple Choice

Between 1976 and 2010, income inequality in Canada has increased in part due to rapid technological change.How does technological change contribute to income inequality?

• A)Advancements in technology displace skilled and unskilled workers in certain fields, leading to higher unemployment rates.
• B)Technology complements the skills of the well-educated while rendering redundant the labour services of unskilled and low-skilled workers. This causes a decline in the wages of low and unskilled workers relative to other workers.
• C)The opportunity cost of investing in technology is investments in human capital. The resulting decrease in labour's marginal productivity has led to lower wages.
• D)Technological change favours the owners of capital and since high income individuals tend to own capital, income inequality is further exacerbated.

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Definitions:

Fluctuations

Variations or changes in level, degree, or value that occur over time.

Responsibility Centres

Sections or departments within an organization, each overseen by a manager who is accountable for its performance and financial outcomes.

Support Department Costs

Expenses associated with departments that do not directly produce goods or services but support those who do, like maintenance or administration.

Manufacturing Costs

Expenses directly tied to the process of producing finished goods, including raw materials, labor, and overhead costs.