Economists Point Out That the Strong Inflow of Undocumented Workers

question 132

Multiple Choice

Economists point out that the strong inflow of undocumented workers to some extent reflects the

• A)increasing return to capital in the United States.
• B)increasing scarcity of unskilled labor in other countries.
• C)more lenient immigration laws.
• D)increasing scarcity of domestic unskilled labor in the United States.

Describe the characteristics of the market portfolio and its significance in CAPM.

Understand the Arbitrage Pricing Theory (APT) and its comparison with CAPM.

Explain the practical applications and limitations of CAPM in financial decision-making.

Analyze how changes in risk aversion impact the security market line (SML) and stock prices.

---

Definitions:

Intermediary

An entity or person that acts as a middleman between two parties in a transaction or communication, facilitating interactions.

Systems Software

The collection of software that manages computer hardware resources and provides common services for computer programs.

Personal Finance

The management of financial activities such as savings, investment, and budgeting by an individual or a household.

Checkbooks

Books containing blank checks connected to a checking account, allowing the account holder to write checks for financial transactions.