Between 1980 and 2014, Income Inequality in the United States

question 190

Multiple Choice

Between 1980 and 2014, income inequality in the United States has increased in part due to expanding international trade.How does expanding international trade contribute to income inequality?

• A)It increases the demand for a wide array of products which in turn increases prices beyond the reach of average-income individuals.
• B)It allows producers to exploit workers and reduce the wages they are willing to pay workers.
• C)Domestic firms can now hire low-skilled workers anywhere in the world, putting U.S. workers in competition with foreign workers. This has caused the wages of unskilled workers to be depressed relative to the wages of other workers.
• D)It reduces the cost of producing goods and therefore lowers the value of labor's services.

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Definitions:

Normal Production

The expected production capacity or output level under standard operating conditions, without factoring in extraordinary circumstances.

Standard Material Quantity

The specified amount of materials expected to be used in production, serving as a benchmark for cost control and efficiency.

Actual Production

The actual quantity of goods or services produced by a company during a specific period.

Normal Production

Denotes the expected volume of production achieved under standard operating conditions, without unusual increases or decreases.