Economists who attempt to explain the increasing earnings gap between skilled and unskilled workers in the United States offer two main hypotheses. Both hypotheses
A)suggest that, over time, the demand for unskilled labor has risen relative to the demand for skilled labor.
B)suggest that, over time, the demand for skilled labor has risen relative to the demand for unskilled labor.
C)emphasize the shrinking importance of international trade in recent years.
D)emphasize the growing importance of women and teenagers in the workforce in recent years.

Question

Quizplus · Accepted Answer

Economists argue that the increasing earnings gap between skilled and unskilled workers in the United States is due to the increasing demand for skilled labor relative to unskilled labor. This can be attributed to technological advancements and globalization, which have led to the automation of routine tasks and the outsourcing of low-skilled jobs to countries with cheaper labor. As a result, there is a higher demand for workers with specialized skills and education, leading to higher wages for these workers compared to those with less education and skills.

Economists Who Attempt to Explain the Increasing Earnings Gap Between