Which of the Following Could Explain the Changing Gap in Income

question 31

Multiple Choice

Which of the following could explain the changing gap in income between unskilled and skilled workers in the United States?

• A)International trade has decreased the domestic demand for skilled labor and increased the domestic demand for unskilled labor.
• B)Certain technological changes such as the introduction of computers have increased the domestic demand for skilled labor and decreased the domestic demand for unskilled labor.
• C)Both a and b are correct.
• D)Neither a nor b is correct.

---

Definitions:

Tax Breaks

Financial incentives or reductions in tax payments provided to individuals or businesses by the government.

Creative Benefits

Innovative and non-traditional employee perks designed to improve satisfaction and loyalty, such as flexible working hours or wellness programs.

Retirement Plan

A financial arrangement designed to replace employment income upon retirement, often including contributions from both employer and employee.

Benefits Packages

A collection of non-wage compensations such as medical insurance, pensions, and vacation time offered to employees.