In the United States, skilled labor is relatively abundant and unskilled labor is relatively scarce.Exporting goods that require skilled labor will
A) reduce wage inequality between skilled and unskilled workers.
B) increase wage inequality between skilled and unskilled workers.
C) not change the wage inequality between skilled and unskilled workers.
D) reduce the number of skilled workers employed in the United States.

Question

Quizplus · Accepted Answer

Exporting goods that require skilled labor will increase the demand for skilled labor in the U.S. This will cause the wages of skilled workers to increase relative to unskilled workers, leading to an increase in wage inequality between the two groups.

In the United States, Skilled Labor Is Relatively Abundant and Unskilled