Which of the Following Explains the Impact of Technological Advances

question 235

Multiple Choice

Which of the following explains the impact of technological advances on the wage gap between less skilled workers and highly skilled workers?

• A) Advances in technology have increased the demand for higher education degrees and widened the wage gap between the two groups.
• B) Advances in technology have increased the productivity of less skilled workers and thus narrowed the wage gap between the two groups.
• C) Advances in technology have increased the demand for less skilled workers and highly skilled workers alike, and thus the wage gap between the two groups remains unchanged.
• D) none of the above

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Definitions:

Interest Rate

The percentage charged on a loan or paid on savings over a specific period, representing the cost of borrowing or the reward for saving.

Amortization Debt

A loan repayment plan in which the borrower pays both interest and principal over time, gradually reducing the outstanding balance.

Loan

A sum of money that is borrowed, typically from a financial institution, which is expected to be paid back with interest.

Effective Annual Rate

The interest rate that reflects the compound interest rate paid or earned on an investment, loan, or other financial product over a year.