Suppose That Jeans Dramatically Decrease in Popularity

question 102

Multiple Choice

Suppose that jeans dramatically decrease in popularity. All else equal, how will this affect the labor market for workers in jeans factories? The labor demand for workers in jeans factories will decrease. The wage for workers in jeans factories will increase. The labor supply of workers in jeans factories will decrease.

• A)I only
• B)II and III only
• C)III only
• D)I, II, and III

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Definitions:

Risky Stock

Shares of a company with a high level of risk, often due to volatility, uncertainty, or both, potentially leading to high returns or losses.

Diversified Portfolio

An investment portfolio constructed with a mix of assets to reduce exposure to risk associated with any single asset or asset class.

Market Risk

The risk of losses in investments due to factors that affect the entire market, such as economic shifts or political events.

Asset-Specific Risk

The risk associated with holding a particular asset, which can be reduced through diversification.