In Recent Years, the Ratio of Earnings of the Typical

question 116

Multiple Choice

In recent years, the ratio of earnings of the typical U.S. college graduate to the earnings of the typical high school graduate without additional education has

• A) risen as the demand for skilled labor has increased relative to the demand for unskilled labor.
• B) risen as the demand for skilled labor has decreased relative to the demand for unskilled labor.
• C) fallen as the demand for skilled labor has increased relative to the demand for unskilled labor.
• D) fallen as the demand for skilled labor has decreased relative to the demand for unskilled labor.

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Definitions:

Balance Of Trade

The difference in value between a country's imports and exports over a certain period.

Gross Domestic Product

GDP is the total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period.

Intermediate Goods

Products used in the production process to make other goods, but are not part of the final product.

Double Counting

The mistake of including both the value of intermediate products and the value of final products in calculating gross domestic product; counting the same production more than once