Asked by Cristina Elena on May 14, 2024
Verified
Example 2.2 in the textbook explains the source of wage inequality in the United States. In terms of supply and demand, the wage of skilled workers has:
A) decreased, because the supply has increased more than the increase in demand for those workers.
B) decreased, because the demand has decreased and the supply has increased.
C) increased, because the demand has increased faster than the increase in supply.
D) increased, because the demand has increased, while the supply has decreased.
Wage Inequality
The disparity in income received by workers, often highlighted by significant differences in wages across different sectors, regions, or demographic groups.
Skilled Workers
Employees who have specialized training, knowledge, and experience that empower them to perform complex tasks.
Supply and Demand
The fundamental economic model describing how prices vary as a result of a balance between the quantity of a good or service available and the quantity desired by consumers.
- Investigate the effects of varying market conditions, particularly shifts in supply and demand, on salaries and the distribution of income.
Verified Answer
MH
Moazzam HossainMay 19, 2024
Final Answer :
C
Explanation :
According to the textbook, the source of wage inequality in the United States is due to the demand for skilled workers increasing faster than the increase in supply. This means that the wage for skilled workers has increased.
Learning Objectives
- Investigate the effects of varying market conditions, particularly shifts in supply and demand, on salaries and the distribution of income.