Supporters of Globalization Maintain That the Apparent Decline in Real

question 27

Multiple Choice

Supporters of globalization maintain that the apparent decline in real wage rates of unskilled workers

• A) is due to technological changes that create greater demand for skilled workers.
• B) is due to the migration of low-wage manufacturing jobs offshore.
• C) can be checked by increasing government ownership of enterprises.
• D) can be checked by limiting free trade and foreign investment.

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Definitions:

Population

The total number of individuals inhabiting a specific area or country.

Consumption

The use of goods and services by households. It is the largest component of aggregate demand in an economy.

Underground Economy

Economic activities that occur outside of government regulation and taxation, including both illegal activities and unreported income from legal work.

Intermediate Goods

Products used in the production process to make other goods, not including raw materials.