Question

According to the analysis and info presented in class, the following are likely causes for growing economic inequality in USA within the last few decades, EXCEPT:

Question 2 options:

	An increase in demand while having an Inelastic Supply for High Skilled Labor.
	An increase in demand while having an Elastic Supply for Low Skilled Labor.
	Increase in the supply of High Skilled Labor but reduction in Supply of Low Skilled Labor.
	Tendency of high income earners to marry other high income earners.

Answer 1

The following are likely causes for growing economic inequality in USA within the last few decades, EXCEPT:

Answer: An increase in demand while having an Elastic Supply for Low Skilled Labor.

Explanation

During the past few decades, skill biased technological growth cause increased demand for high skilled labor. But at the same time, having Inelastic Supply for High Skilled Labor cause growing economic inequality in USA within the last few decades. Therefore, An increase in demand while having an elastic Supply for High Skilled Labor are not likely causes for growing economic inequality in USA within the last few decades.