-In the Figure, When the Real Wage Rate Is $10

question 128

Multiple Choice

-In the figure, when the real wage rate is $10 an hour, ___________.

• A) a shortage of labor exists and the real wage rate will rise
• B) the demand for labor will decrease
• C) the demand for labor will increase
• D) a surplus of labor exists and the real wage rate will fall

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Definitions:

Proportions

The relationship between parts of a whole, expressed as fractions, percentages, or ratios.

Capital Market Line

A line used in the capital asset pricing model to illustrate the rates of return for efficient portfolios depending on the risk (measured by standard deviation).

Capital Allocation Line

A graphical representation that shows risk and return of possible portfolios by combining a risk-free asset with a portfolio of risky assets.