Which of the Following Explains the Rise in Income Inequality

question 231

Multiple Choice

Which of the following explains the rise in income inequality from 1970 to 2005?

• A) An increase in minimum wages.
• B) An increase in the demand for skilled labor.
• C) An increase in the demand for unskilled labor.
• D) Reduced international trade with low-wage countries.

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Definitions:

Short-term Debt

Financial obligations that are due for repayment within one year, often used to finance immediate operational needs.

Provincial Tax Rates

The percentage of tax levied by provincial or state governments on income, property, and purchases within their jurisdiction.

Income

Money received, especially on a regular basis, for work or through investments.

Total Tax

The aggregate amount of tax owed to federal, state, local, and foreign taxing authorities.