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 reduces the cost of producing goods and therefore lowers the value of labor's services.
B) It allows producers to exploit workers and reduce the wages they are willing to pay workers.
C) It increases the demand for a wide array of products which in turn increases prices beyond the reach of average-income individuals.
D) 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
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"The theory that regulation seeks an efficient use of resources is called the capture theory of regulation." Is the previous statement correct or incorrect? Explain your answer
What will be an ideal response?
If a member of a cartel is the first to alert authorities to the cartel behavior, which of the following will occur to this member firm?
A) The firm will face significant fines. B) The firm's most senior managers will face jail time. C) The firm will not be considered whistle -blowers. D) The firm will not be penalized.
Private saving equals:
a. Y - C - T + TR b. Y + C + T + TR c. Y + C + T - TR d. Y + C - T - TR
Income received minus direct taxes is called
a. national income b. personal income c. disposable personal income d. transfer payments e. net national product