Between 1980 and 2014, income inequality in the United States has increased in part due to expanding international trade. How does expanding international trade contribute to income inequality?
A) It reduces the cost of producing goods and therefore lowers the value of labor's services.
B) It allows producers to exploit workers and reduce the wages they are willing to pay workers.
C) It increases the demand for a wide array of products which in turn increases prices beyond the reach of average-income individuals.
D) Domestic firms can now hire low-skilled workers anywhere in the world, putting U.S. workers in competition with foreign workers. This has caused the wages of unskilled workers to be depressed relative to the wages of other workers.
D
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In the above figure, while drawing the line showing the relationship between the price of a pound of peanuts and the quantity sold, the
A) price of a pound of pecans does not change. B) price of a pound of peanuts does not change. C) the quantity of peanuts that farmers supply does not change. D) Both answers A and B are correct. E) Both answers B and C are correct.
Domestic goals dominate international goals for all of the following reasons except:
A. international goals affect a country's population indirectly. B. in politics, indirect effects take a back seat. C. international goals are ambiguous. D. countries are becoming more economically integrated.