An Increase in the Demand for Workers Producing Computers for Export

question 33

Multiple Choice

An increase in the demand for workers producing computers for export versus producing agricultural products that can be imported more cheaply from abroad is an example of how increasing wage inequality can result from:

• A)the diminishing marginal product of labor.
• B)the diminishing marginal product of capital.
• C)increasing reservation prices.
• D)globalization.

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Definitions:

Sell Signals

Indications, based on technical analysis or other factors, suggesting that it might be an opportune time to sell a particular investment.

Market Risk Premium

The difference between the expected return on a market portfolio and the risk-free rate.

Stock Prices

The present rate at which a corporation's stock share is available for purchase or sale on the market.

Small-Firm Effect

The small-firm effect refers to the historical trend where smaller firms, in terms of market capitalization, have achieved higher risk-adjusted returns than larger companies.