Question

An increase in the wages of truck drivers might be explained by which of the following factors?

A. A reduction in the demand for transportation
B. A reduction in the price of rail transportation
C. An increase in the price of gasoline
D. An increase in shipments in the retail and wholesale industries

Answer 1

An increase in the wages of truck drivers can be explained by higher shipments in the retail and wholesale industries and an increase in the price of gasoline.

Step-by-step explanation:

An increase in the wages of truck drivers can be explained by the following factors:

1. An increase in shipments in the retail and wholesale industries: When there is an increase in the demand for transporting goods due to higher shipments in industries, truck drivers may earn more as their services are in demand.
2. An increase in the price of gasoline: If the price of gasoline rises, it can lead to higher transportation costs for companies. To compensate for the increased cost, companies may offer higher wages to truck drivers.