Table 28-7 Below Is Data About the Labor Market in the City

question 665

Multiple Choice

Table 28-7
Below is data about the labor market in the city of Productionville.
-Refer to Table 28-7. If the local government imposed a minimum wage of $7 in Productionville, how many people would be unemployed?

• A)0
• B)2,000
• C)5,000
• D)10,000

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Definitions:

Multifactor APT

Multifactor Arbitrage Pricing Theory, a model that describes the relationship between risk and expected return with multiple factors.

Beta

An indicator of the level of fluctuation, or inherent risk, of an asset or collection of assets relative to the overall market.

Zero-Investment Portfolio

A portfolio of zero net value, established by buying and shorting component securities, usually in the context of an arbitrage strategy.

Positive Expected Return

A projection that an investment will yield a return above the initial outlay.