ECONOMICS
GDP
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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the sharp increase in the cost of living
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economy changing from a goods producing economy to service economy
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the decline of unions
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a widening gap between well educated and poorly educated workers
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Detailed explanation-1: -A major cause of economic inequality within modern economies is the determination of wages by the capitalist market. In the capitalist market, the wages for jobs are set by supply and demand. If there are many workers willing to do a job for a great amount of time, there is a high supply of labor for that job.
Detailed explanation-2: -Income inequality is rising. A quarter of a century ago, the average disposable income of the richest 10% in OECD countries was around seven times higher than that of the poorest 10%; today, it’s around 9½ times higher.
Detailed explanation-3: -Tax policy – Pre-tax income inequality in the U.S. is similar to other developed countries, but markedly rises after taxes and transfers. Immigration – Relatively high levels of immigration of less-skilled workers since 1965 may have reduced wages for American-born high school dropouts.
Detailed explanation-4: -Money was distributed disparately between the rich and the middle-class, between industry and agriculture within the United States, and between the U.S. and Europe. This imbalance of wealth created an unstable economy.