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The International Trade Hypothesis Has Been Advanced as an Explanation

Question 118

Multiple Choice

The international trade hypothesis has been advanced as an explanation for the widening earnings gap between skilled and unskilled workers in the U.S.What does this hypothesis assert happens to the domestic demand for skilled and unskilled labour when international trade expands


A) The domestic demand for skilled labour rises, and the domestic demand for unskilled labour also rises.
B) The domestic demand for skilled labour rises, and the domestic demand for unskilled labour falls.
C) The domestic demand for skilled labour falls, and the domestic demand for unskilled labour rises.
D) The domestic demand for skilled labour falls, and the domestic demand for unskilled labour also falls.

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