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Question: 1. Evaluate the validity of the following claim: The increasing wage gap between highly educated and less-educated workers will itself generate shifts in the U.S. labor market over the next decade. As a result of these responses, much of the "excess" gain accruing to highly educated workers will soon disappear.
2. Suppose the U.S. government is considering changes in economic and social policy to reduce the extent of wage inequality-or at least to slow down its very rapid rise. What will be the impact of these proposed changes on wage inequality?
a. Indexing the minimum wage to inflation.
b. A decrease in the benefit level paid to welfare recipients.
c. An increase in the benefit level paid to welfare recipients.
d. An increase in wage subsidies paid to firms that hire less-advantaged workers.
e. An increase in border enforcement, reducing the number of illegal aliens entering the country.
Reframe your answer to Exercise in terms of objectives and alternatives. That is, what are appropriate fundamental objectives to consider in the context.
consider an economy in which the consumption function takes the following simple algebraic form c 3000.75di and in
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