An increase in the demand for workers producing computers for export versus producing agricultural products that can be imported more cheaply from abroad is an example of how increasing wage inequality can result from:
A. increasing reservation prices.
B. the diminishing marginal product of labor.
C. globalization.
D. the diminishing marginal product of capital.
Answer: C
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The trade-off between the production of one good and the production of another good can change over time because of technological advances
a. True b. False Indicate whether the statement is true or false
If a tax is legally required to be paid by sellers, sellers typically bear the full burden of the tax.
Answer the following statement true (T) or false (F)
It costs a computer manufacturer $1,000 to produce a personal computer. This manufacturer sells these computers abroad for $600. This is an example of
A. a negative tariff. B. export subsidy. C. a trade-related economy of scale. D. dumping.
An increase in the wage rate of diamond cutters will increase the supply of cut diamonds.
Answer the following statement true (T) or false (F)