A Binding Minimum Wage Law Will Decrease the Quantity of Labour

question 64

True/False

A binding minimum wage law will decrease the quantity of labour demanded.

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Definitions:

Expected Return

The probability-weighted average of the possible outcomes.

Risk Premium

The extra return above the risk-free rate that investors require as compensation for the risk of an investment.

Alpha

In investing, alpha is the measure of an investment's return relative to a benchmark index's performance, representing the value that a portfolio manager adds or subtracts from a fund's return.

Beta

A measure of a stock's volatility in relation to the overall market; a beta greater than 1 indicates greater volatility than the market.