The evidence suggests that recent technological change:
A) is different from past technological change, in that it has no impact on productivity.
B) has increased the wage gap between skilled and unskilled workers.
C) has increased productivity in the service sector only.
D) has increased productivity in the manufacturing sector only.
E) permanently increased the natural rate of unemployment.

Question

Quizplus · Accepted Answer

There is evidence to suggest that recent technological change has increased the wage gap between skilled and unskilled workers. This is because technological change has increased demand for skilled workers who are able to operate and maintain new technologies, while reducing demand for unskilled workers who are easily replaced by machines. This has led to an increase in the wage gap between these two groups of workers. The other choices (A, C, D, and E) are incorrect because they do not accurately reflect the evidence.

The Evidence Suggests That Recent Technological Change