Slower Real Wage Growth in the U

question 50

Multiple Choice

Slower real wage growth in the U.S. since the 1970s accompanied by rapid job growth, can be explained by:

• A)skill-biased technological change.
• B)globalization.
• C)a productivity slowdown accompanied by an increase in the labor supply.
• D)a productivity slowdown accompanied by a decrease in the labor supply.

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Definitions:

Time Value

The notion that money possessed today is more valuable than the same quantity in the future due to its potential to earn income.

Accounting Data

Financial information and records about a company's transactions used for reporting and analysis.

Internal Rate of Return

A financial metric used to evaluate the profitability of potential investments, representing the discount rate at which the net present value of all the cash flows from a project equals zero.

Net Present Value

A method of evaluating the profitability of an investment, which calculates the difference between the present value of cash inflows and the present value of cash outflows over a period of time.