If Most People's Desire for Leisure Increases,which One of the Following

question 53

Multiple Choice

If most people's desire for leisure increases,which one of the following statements is correct?

• A)The wage rate would fall,and the quantity of products produced would rise.
• B)Both the wage rate and the quantity of products produced would fall.
• C)The wage rate would fall,and the demand for labour would increase.
• D)The wage rate would rise,and the quantity of products produced would fall.
• E)Both the wage rate and the quantity of products produced would rise.

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Definitions:

CAPM

The Capital Asset Pricing Model, a formula that describes the relationship between systematic risk and expected return for assets, particularly stocks.

Expected Return

The anticipated or forecasted return on an investment based on historical or projected performance data.

Systematic Risk

The risk inherent to the entire market or market segment, also known as non-diversifiable risk or market risk.

Market Risk Premium

The higher return an investor foresees from investing in a market portfolio with associated risks as opposed to choosing completely safe assets.