Economists who attempt to explain the increasing earnings gap between skilled and unskilled workers offer two main hypotheses:
A)one hypothesis emphasizes education, and the other emphasizes compensating differentials.
B)one hypothesis emphasizes education, and the other emphasizes international trade.
C)one hypothesis emphasizes international trade, and the other emphasizes technology.
D)one hypothesis emphasizes technology, and the other emphasizes compensating differentials.

Question

Quizplus · Accepted Answer

The two main hypotheses are that international trade increases demand for skilled labor in developed countries, and technology advances favor skilled over unskilled workers.

Economists Who Attempt to Explain the Increasing Earnings Gap Between