According to the passage, all these factors affect labour incomes and contribute to their inequality EXCEPT:Precautionary saving for potential negative income shocks.Permanent wage inequalities among different worker groups.Short-term fluctuations, such as changes in wages and working hours.Skill level and hierarchical position of each worker group.

What is meant by the skill-biased technological explanation of increasing inequality?Group of answer choicesThere has been increasing inequality over the last 40 years because unskilled workers use no technology.There has been increasing inequality over the last 40 years among high-skilled workers.Inequality has increased because technological advances over the last 40 years have complemented the productivity of skilled labour more relative to unskilled labour.Inequality has increased because technological advances over the last 40 years have complemented the productivity of unskilled labour more relative to foreign labour.Inequality has increased because technological advances have not kept pace with the demand for education.

Worker organizations can affect wages by:A.making workers more productive over time.B.advocating for higher pay for workers.C.lowering the market value of each worker.D.ensuring that all workers receive an education.

Which of the following is likely to cause an increase in income inequality?An increase in the minimum wageAn increase in the number of successful people marrying other successful peopleA decrease in assortative matingAn increase in the Gini coefficient

Assuming consumption and leisure are both normal goods, hours worked will fall when the wage increases if             Group of answer choicesif the income and substitution effect move in the same direction (i.e., if they are of the same sign).the substitution effect dominates the income effect.the wage increase is accompanied by an increase in prices.the income effect dominates the substitution effect.if the income and substitution effect move in the opposite direction (i.e., if they are of the opposite sign).

What is meant by: Income Inequality