In Order to Explain the Changing Gap in Earnings Between

question 46

Multiple Choice

In order to explain the changing gap in earnings between skilled and unskilled workers in recent years, economists have proposed two hypotheses. One hypothesis emphasizes

• A)compensating differentials.
• B)the increased recognition that a larger stock of human capital usually leads to higher earnings.
• C)technological progress.
• D)the decreasing importance of international trade.

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Definitions:

Theory of Emotion

A set of ideas aimed at explaining how and why people experience emotions, including the physiological and psychological processes involved.

Pedophiles

Adults who are sexually attracted to prepubescent children, which is a psychiatric disorder and subject to legal consequences.

Unpredictability

The quality of being unable to be predicted or foreseen, often leading to a sense of uncertainty or variability in outcomes.

Stressful

Characterized by or causing stress or anxiety.