One Reason Unions Might Support an Increase in the Minimum

question 177

True/False

One reason unions might support an increase in the minimum wage is because such a policy would cause a leftward shift in the demand curve for union labor.

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Definitions:

Sharpe Ratio

A measure that indicates the average return earned in excess of the risk-free rate per unit of volatility or total risk, assessing the performance of an investment.

Risk Aversion

The preference to avoid uncertainty and potential financial loss.

Holding-period Return

The total return received from holding an asset or portfolio of assets over a period of time, considering both income and capital gains.

Risk Aversion

The behavior exhibited by investors who prefer lower risk investments, often at the expense of sacrificing some potential returns.