Final answer:
Trade and technology both contribute to increased income inequality according to most trade economists. Trade can benefit certain industries and workers while hurting others, while technology can lead to productivity gains that benefit some workers but leave others behind.
Step-by-step explanation:
The question is asking about the main factor that is considered the villain for increased income inequality according to most trade economists. This can be understood by examining the tradeoff between economic output and equality. According to economists, both trade and technology can contribute to increased income inequality.
Trade can lead to income inequality because it can benefit certain industries and workers while hurting others. For example, if a country specializes in producing and exporting high-skill products, workers in those industries may experience higher wages and job opportunities, while workers in industries that face competition from imported goods may experience job losses and lower wages.
Similarly, technology can also contribute to income inequality. Technological advancements often lead to productivity gains, which can benefit those who have the skills to adapt and use the new technologies. However, workers who lack the necessary skills may be left behind and face wage stagnation or job displacement.
Therefore, the correct answer is C. Both Trade and Technology.