A Decrease in the Demand for Musicians ________ the Number

question 139

Multiple Choice

A decrease in the demand for musicians ________ the number of musicians employed, and ________ the wages paid to musicians.

• A) increases; increases
• B) increases; decreases
• C) decreases; increases
• D) decreases; decreases

---

Definitions:

Business-specific Risk

This is the risk associated with the unique factors impacting a specific company or industry, excluding broader market or economic risks.

Unsystematic Risk

The risk associated with a particular company or industry, which can be mitigated through diversification.

Diversification

The strategy of spreading investments among various financial assets to reduce risk.

Probability Distribution

A mathematical function that outlines every potential value and their probabilities that a random variable might assume across a specified interval.