Economists who attempt to explain the increasing earnings gap between skilled and unskilled workers offer two main hypotheses:
A) One hypothesis emphasizes education, and the other emphasizes random influences.
B) One hypothesis emphasizes education, and the other emphasizes supply and demand.
C) One hypothesis emphasizes international trade, and the other emphasizes technology.
D) One hypothesis emphasizes signaling, and the other emphasizes education.

Question

Quizplus · Accepted Answer

The two main hypotheses are that international trade increases demand for skilled workers in developed countries, and technology advances require more skilled labor, widening the earnings gap.

Economists Who Attempt to Explain the Increasing Earnings Gap Between