Income differentials within a country can be decreased by:

Question

Quizplus · Accepted Answer

Labor and capital mobility allow workers and capital to move from areas with lower wages and returns to areas with higher wages and returns. This movement reduces the income differentials within a country. Trade barriers between regions or technological change in a particular industry may shift the distribution of income, but they do not necessarily reduce overall income differentials within a country. Uniform growth in population does not necessarily lead to a decrease in income differentials either.

Income Differentials Within a Country Can Be Decreased By