Between 1980 and 2014, income inequality in the United States has increased in part due to rapid technological change. How does technological change contribute to income inequality?
A) Advancements in technology displace skilled and unskilled workers in certain fields, leading to higher unemployment rates.
B) The opportunity cost of investing in technology is investments in human capital. The resulting decrease in labor's marginal productivity has led to lower wages.
C) Technology complements the skills of the well-educated while rendering redundant the labor services of unskilled and low-skilled workers. This causes a decline in the wages of low and unskilled workers relative to other workers.
D) Technological change favors the owners of capital and since high-income individuals tend to own capital, income inequality is further exacerbated.
C
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Refer to the scenario above. Which of the following problems arises in this scenario?
A) Low transaction costs B) The free-rider problem C) Moral hazard D) A negative externality
Which of the following would be cures for the U.S. trade deficit?
A. Americans saving less and spending more B. A severe recession in Europe and Asia C. A severe recession in the United States D. A tax cut E. All of these responses are correct.
With few applicants and several key positions to fill, the owner of a commercial bakery increased the starting wage offered from $12.00 to $15.00 per hour and was able to fill the positions. Which of the following is true of the $12.00 wage rate?
a. The wage is lower than equilibrium. b. The wage is at equilibrium. c. The wage created a surplus. d. The wage attracted just enough workers.
Deciding to go to a ballgame rather than do your homework is an example of a(n)
a. production possibility b. a bad idea c. trade-off d. person about to lose their college scholarship