Economists have hypothesized that the widening gap between the wages of unskilled workers and skilled workers may be due to ?
Correct answer: A. decrease in the demand for unskilled workers because of increases in technology and increases in international trade
- A. decrease in the demand for unskilled workers because of increases in technology and increases in international trade
- B. increase in the number of unskilled workers available due to immigration into the UK.
- C. decrease in the demand for unskilled workers are more poorly educated
- D. increase in the number of unskilled workers available because workers are more poorly educated
Explanation
Skill-biased technological change and international trade can reduce demand for unskilled labour relative to skilled labour, widening the wage gap. The other choices are poorly worded or do not state the standard explanation as clearly.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? [email protected]
About Microeconomics
Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
Practise Microeconomics
1,742 free Microeconomics MCQs from Economics, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Discussion
Stuck on an option, or know a faster way to get there? Ask or explain it here.
No comments yet. Be the first to explain this one.
Exams that ask Economics questions like this
Economics is on 3 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Microeconomics questions
It is not considered discrimination when an employer offers different opportunities to individuals that differ only by them ?
Which of the following statements regarding discrimination is true ?
A wage differential among groups may not by itself be evidence of discrimination in the labour market because different groups have ?
Which of the following could result in women being paid less than men ?
In a competitive market, which of the following is least, likely to be the source of a persistent discriminatory wage differential ?
All of the following would tend to increase a worker's wage except ?