Income inequality in the United States has increased in part due to globalization. How does globalization contribute to income inequality?
A) It reduces the cost of producing goods and therefore lowers the value of labor services.
B) It allows domestic firms to hire low-skilled workers anywhere in the world, putting U.S. workers in competition with foreign workers. This has caused the wages of low-skilled workers to fall relative to the wages of other workers.
C) It increases the demand for a wide variety of products which in turn increases prices beyond the reach of average-income households.
D) It allows producers to exploit workers and reduce the wages they are willing to pay those workers.
B
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The income elasticity of demand for all goods taken together must be
A) zero. B) -1. C) +1. D) between 0 and 1.
Which of the following is a reason why an American would demand British pounds?
a. To purchase British real estate b. To purchase Japanese semiconductors c. To purchase French government bonds d. To purchase stocks on the New York Stock Exchange e. To purchase a ticket to see a British film in the U.S.
The portion of corporation profits received by shareholders is termed
a. stocks b. bonds c. dividends d. interest e. principal
The basis of judgment for the Standard Oil case was ________, whereas the basis of judgment for the ALCOA case was ________:
A. market concentration; interlocking directorships. B. monopolistic abuses; market structure. C. market structure; market performance. D. unfair business practices; price discrimination.