Why has there been an increase in the inequality of income?
a. The demand for skilled workers has declined.
b. The demand for skilled workers has remained constant and the demand for unskilled workers has declined.
c. The government policies went against the unskilled workers.
d. The demand for skilled workers has increased and the demand for unskilled workers has not kept pace.
e. The demand for unskilled workers has increased as they could be hired for lower wages.
d
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What is an economic model?
A) It is a simplified version of some aspect of economic life used to analyze an economic issue. B) It is a description of an economic issue that includes all possible related information. C) It is a detailed version of some aspect of economic life used to analyze an economic issue. D) It is a description of an economic issue based on official government information.
Answer the following statement(s) true (T) or false (F)
1. An individual supply curve is a graphical representation of the quantity of goods and services that all the individual producers are willing and able to supply at various prices. 2. A shift in the entire supply curve is called a change in quantity supplied. 3. The supply of a good increases if the price of one of its substitutes in production falls. 4. If producers expect a higher price in the future, they will supply less now than they otherwise would have.
In the case of a vertical contract curve, union negotiations will result in the firm hiring
A. fewer workers but at a higher wage than it would in the absence of the union. B. fewer workers but at a lower wage than it would in the absence of the union. C. the same number of workers but at a lower wage than it would in the absence of the union. D. the same number of workers but at a higher wage than it would in the absence of the union. E. more workers and at a higher wage than it would in the absence of the union.
Suppose Country A, a labor-abundant country, produces only wheat and cloth. The following equations illustrate the prices and costs of wheat and cloth in the country. The numbers indicate the amounts of labor and land needed to produce a unit of wheat and cloth. 'W' is the wage rate and 'r' is the rental rate of land.Price of wheat = 1w + 2rPrice of cloth = 2w + 1rSuppose Country A engages in free trade and the price of cloth increases to $4 per unit. However, the price of wheat remains unchanged. As a result of the change in the price of cloth, the landowners are most likely to be able to
A. purchase more of both cloth and wheat than in the absence of trade. B. purchase less of both cloth and wheat than in the absence of trade. C. purchase more wheat but less cloth than in the absence of trade. D. purchase more cloth but less wheat than in the absence of trade.