A "technology" hypothesis has been advanced as an explanation for the widening earnings gap between skilled and unskilled workers in the United States.This hypothesis emphasizes the likelihood that technological advances have
A) increased the supply of both skilled and unskilled workers.
B) increased the supply of skilled workers and decreased the supply of unskilled workers.
C) increased the demand for skilled workers and decreased the demand for unskilled workers.
D) decreased the demand for both skilled and unskilled workers.

Question

Quizplus · Accepted Answer

The technology hypothesis suggests that advances in technology have increased the demand for skilled workers, who are better able to operate and manage the new technologies, while decreasing the demand for unskilled workers, who can be replaced by machines or outsourced to countries with lower labor costs. This has caused a widening earnings gap between the two groups.

A "Technology" Hypothesis Has Been Advanced as an Explanation for the Widening