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)The average educational attainment of an unskilled worker continues to increase.
D)There is greater domestic demand for unskilled labor compared to skilled labor.

Question

Quizplus · Accepted Answer

Technological changes, particularly the introduction of computers and automation, have significantly increased the demand for skilled labor who can operate, manage, and innovate with these technologies. Conversely, these changes have reduced the demand for unskilled labor, as many tasks previously performed by humans can now be automated, leading to a widening income gap between skilled and unskilled workers.

Which of the Following Could Explain the Changing Gap in Income