How might technological change and globalization explain trends ...

[rlane42]

How might technological change and globalization explain trends in the distribution of income?
 
  What will be an ideal response?

Question 2

A firm's managers need information on the firm's revenue and costs as well as information on the value of a firm's assets and the amount of the firm's debts to answer three basic questions.
 
  Which of the following is not one of those three basic questions?
  A) how to produce it? B) where to produce?
  C) what to produce? D) what price to charge?

[mk6555]

Answer to Question 1

Technological change and globalization have both changed the distribution of income so that the rich get richer and the poor get poorer. More specifically, technological change has increased the demand for high-skilled workers and increased their wage rates and incomes. It also has decreased the demand for low-skilled workers and decreased their wage rates and their income. Globalization also has increased the demand for high-skilled workers and decreased the demand for low-skilled workers in the United States. Globalization has made contests worldwide, so the prizes for the best superstarsbe they athletes or business managershave increased with the increase in the size of the market.

Answer to Question 2

B

[rlane42]

Thank you

[mk6555]

Happy to help you