Which of the following could explain the changing gap in income between unskilled and skilled workers in the United States?
A)International trade has decreased the domestic demand for skilled labor and increased the domestic demand for unskilled labor.
B)Certain technological changes such as the introduction of computers have increased the domestic demand for skilled labor and decreased the domestic demand for unskilled labor.
C)Both a and b are correct.
D)Neither a nor b is correct.

Question

Quizplus · Accepted Answer

Technological advancements, like the introduction of computers, have increased the demand for skilled labor while reducing the demand for unskilled labor, contributing to the income gap.

Which of the Following Could Explain the Changing Gap in Income