Which of the following explains the increase in income inequality since 1980?
A) A widening gap between the wages of skilled and extensively-educated workers and the wages of those with fewer skills and less education
B) A rise in the number of single-parent families at low income levels and a rise in two-parent two-earner families at higher income levels
C) An increase in the supply of less-skilled workers combined with an increase in demand for more highly-skilled workers
D) All of the above.
D
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If more firms enter a market that initially had 20 firms in it, then the Herfindahl-Hirschman Index will ________
A) increase B) decrease C) not change D) change in an unpredictable direction
According to Say's law
A) supply creates its own demand. B) demand creates supply. C) changes in supply create supply-side inflation. D) changes in demand create demand-side inflation.