If, as Some Economists Believe, Changes in Technology Over Recent

question 103

Multiple Choice

If, as some economists believe, changes in technology over recent decades have brought about changes in labor markets, then those changes likely have resulted in

• A)reduced emphasis on compensating differentials as an explanation for wage differences.
• B)a reduced emphasis on human-capital differences among workers as an explanation for wage differences.
• C)a narrowing of the earnings gap between high-skilled workers and low-skilled workers.
• D)a widening of the earnings gap between high-skilled workers and low-skilled workers.

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Definitions:

Labor

The human effort, either physical or mental, employed in the production of goods and services.

Materials

Raw elements or substances used in the production or manufacturing of goods.

Variable Costs

Costs that change in proportion to the level of output or activity.

Total Costs

The sum of all expenses associated with the production of goods or services, including both fixed and variable costs.