In Order to Explain the Widening Gap in Earnings Between

question 353

Multiple Choice

In order to explain the widening gap in earnings between skilled and unskilled workers in recent years,economists have proposed two hypotheses.One hypothesis emphasizes

• A) compensating differentials.
• B) the increased recognition that a larger stock of human capital usually leads to higher earnings.
• C) the decreasing importance of labor unions.
• D) the increasing importance of international trade.

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Definitions:

Wholesaler

A person or company that sells goods in large quantities at lower prices, typically to retailers for resale to the public.

Retailer

An entity or individual that provides products directly to buyers, instead of selling them through a wholesaler or supplier who typically distribute their goods to other businesses.

Private Branding

A strategy where a retailer sells products under its own brand name, rather than the name of the manufacturer.

Store Brands

Products that are branded and sold by a retailer under its own label.