What factors have contributed to growing inequality in incomes in the United States?
What will be an ideal response?
Several factors have been cited as probable reasons for growing income inequality in the United States since 1975. First, there has been an increased demand for highly skilled workers compared with less-skilled workers. This increased demand has bid up the wages of highly skilled workers relative to less skilled workers and contributed to income inequality. Second, demographics have changed because of the influx of less-skilled “baby boomers” in the labor force during the 1970 and 1980 the increase in dual incomes among high-wage households, and more single-parent households earning less income. Third, there has been a decline in wages and job security because of more import competition, the influx of less-skilled immigrants into the labor force, and a decline in unionism.
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If the United States has a current account deficit and the capital account is zero, which of the following must be true?
A) The balance on the financial account must equal the balance on the current account. B) Domestic public saving must be less than net foreign investment. C) Net foreign investment must be negative as well. D) Domestic private saving must be less than net foreign investment.
An example of a randomized controlled experiment is when
A) households receive a tax rebate in one year but not the other. B) one U.S. state increases minimum wages and an adjacent state does not, and employment differences are observed. C) random variables are controlled for by holding constant other factors. D) some 5th graders in a specific elementary school are allowed to use computers at school while others are not, and their end-of-year performance is compared holding constant other factors.
If Firm X is a competitive firm in the market for labor, it has little influence over the wage it pays its employees
a. True b. False Indicate whether the statement is true or false
Which statement is true?
A. There is no evidence whatsoever to support the contention that women, blacks, Hispanics, and other minorities are victims of employment discrimination. B. The relatively lower wages earned by women and minorities can be explained entirely by employment discrimination. C. The poverty of women, blacks, and Hispanics can be explained almost entirely by their low earnings. D. None of these statements are true.