Which of the following would increase the gap in wages between skilled and unskilled workers?
A) International trade forces companies to relocate to low- cost countries.
B) An increase in the costs of going to university.
C) New types of production technology that require workers to have more skills.
D) All of the above.
E) None of the above.

Question

Quizplus · Accepted Answer

All of the options listed contribute to increasing the wage gap between skilled and unskilled workers. International trade can lead to job relocation to countries where labor is cheaper, often impacting unskilled workers more severely. An increase in the costs of higher education can limit access to the skills and qualifications needed for higher-paying jobs, widening the wage gap. New production technologies that require higher skill levels can also increase demand for skilled workers, potentially raising their wages relative to those of unskilled workers.

Which of the Following Would Increase the Gap in Wages