How might technological change and globalization explain trends in the distribution of income?
What will be an ideal response?
Technological change and globalization have both changed the distribution of income so that the "rich get richer and the poor get poorer." More specifically, technological change has increased the demand for high-skilled workers and increased their wage rates and incomes. It also has decreased the demand for low-skilled workers and decreased their wage rates and their income. Globalization also has increased the demand for high-skilled workers and decreased the demand for low-skilled workers in the United States. Globalization has made contests worldwide, so the prizes for the best superstars—be they athletes or business managers—have increased with the increase in the size of the market.
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In the calculation of gross domestic product by the expenditure approach, the "investment" component is
A) net investment. B) gross investment minus depreciation. C) gross investment plus depreciation. D) gross investment.
How do we calculate the inflation rate and what is its relationship with the CPI?
What will be an ideal response?
In the short run, if a firm shuts down, its loss is equal to
a. $0 b. its variable costs c. its fixed costs d. fixed costs minus variable costs e. fixed costs minus total revenue
Briefly and concisely define the following terms:
a. statistical discrimination b. compensating wage differential c. affirmative action