Some economists hypothesize that international trade has


Some economists hypothesize that international trade has altered the relative demand for skilled and unskilled labor, changing the gap in earnings between these two groups. Which of the following statements best describes this hypothesis?

(A) Greater demand for skilled labor has led to higher wages for those workers and greater demand for imported products.

(B) Unskilled labor is plentiful and cheap in the US, so the US tends to export goods produced with unskilled labor and import goods produced with skilled labor.

(C) Computers raise the demand for skilled workers and reduce the demand for the unskilled workers whose jobs are replaced by the computers.

(D) Unskilled labor is plentiful and cheap in many foreign countries, so the US tends to import goods produced with unskilled labor and export goods produced with skilled labor.

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Business Economics: Some economists hypothesize that international trade has
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