Economists have proposed which of the following hypotheses to explain the rising wage gap between skilled and unskilled workers? (i) increases in the role of unions in setting skilled wage scales
(ii) increasing international trade
(iii) technological change
A)(i) and (iii) only
B)(ii) and (iii) only
C)(i) and (ii) only
D)(iii) only

Question

Economists have proposed which of the following hypotheses to explain the rising wage gap between skilled and unskilled workers? (i)	increases in the role of unions in setting skilled wage scales
(ii)	increasing international trade
(iii)	technological change
A)(i) and (iii) only
B)(ii) and (iii) only
C)(i) and (ii) only
D)(iii) only

Quizplus · Accepted Answer

Increasing international trade and technological change have both been proposed as hypotheses to explain the rising wage gap between skilled and unskilled workers. The role of unions may also play a role in setting skilled wage scales, but it is not as widely supported as the other two hypotheses. Therefore, option B, (ii) and (iii) only, is the best choice.

Economists Have Proposed Which of the Following Hypotheses to Explain