Income inequality in the United States has increased in part due to technological change. How does technological change contribute to income inequality?
A) It reduces the cost of producing goods and therefore lowers the value of labor services.
B) It is responsible for a majority of new products on the market, and these products are only affordable to higher-income households.
C) It allows manufacturers to produce products with less labor, and this reduction in the demand for labor lowers wages at all skill levels.
D) It has created many higher-income jobs for skilled and trained workers, leaving the income of less-skilled workers relatively unchanged by comparison.
D
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In the figure above, if the market is at equilibrium, the sum of the total consumer surplus and the total producer surplus is
A) $240. B) $600. C) $1,000. D) $0. E) $60.
Dollarization by a foreign country is another form of:
a. balancing a country's current account. b. maintaining monetary policy independence. c. fixing an exchange rate. d. maintaining a balanced government budget.