Table 19-1 Source: US Census Bureau and Mankiw's Calculations

question 201

Multiple Choice

Table 19-1 Source: US Census Bureau and Mankiw's calculations
-Refer to Table 19-1. Economists suspect that the increase in the earnings gap between skilled and unskilled workers is likely due to

• A)an increase in the demand for skilled labor relative to the demand for unskilled labor.
• B)an increase in international trade.
• C)improvements in technology.
• D)All of the above are correct.

---

Definitions:

Bottleneck

A stage in a process that reduces the efficiency of the overall system due to limited capacity or resource.

Demand

An economic principle referring to a consumer's desire and willingness to pay a price for a specific good or service.

Further Processing

Additional processing or manufacturing operations performed on a product to enhance its value before final sale.

Capacity

The maximum level of output that a company can sustain to produce goods or services under a given set of conditions.