Assume That Less Skilled Workers Are in the Lower Half

question 43

Multiple Choice

Assume that less skilled workers are in the lower half of earnings.Which of the following events would cause the 80:20 ratio of incomes to go from 2.0 to 3.0?

• A) a 50% increase in everyone's earnings
• B) a relative decrease in the supply of unskilled workers
• C) a relative decrease in the demand for unskilled workers
• D) An increase in welfare payments causes unskilled workers to leave the work force.

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