Which One of the Following Is a Positive Economic Statement

question 63

Multiple Choice

Which one of the following is a positive economic statement?

• A) An increase in the minimum wage will reduce employment for teenagers.
• B) The minimum wage should be increased.
• C) Social justice will be served by increasing the minimum wage.
• D) Thoughtful people oppose an increase in the minimum wage.

Understand the concept and the historical evolution of the Equity Premium Puzzle.

Comprehend the methodology for testing multifactor CAPM and APT, including specifying risk factors and testing hedge portfolios.

Recognize the limitations and testable hypotheses of the CAPM according to Roll.

Grasp the requirements for testing multifactor CAPM and APT, such as identification and testing of hedge portfolios.

---

Definitions:

Peripheral Route Persuasion

A method of persuasion that relies on cues outside of the message content itself, such as the attractiveness or credibility of the source.

Fundamental Attribution Error

The cognitive bias of overemphasizing personal characteristics and underestimating situational factors when explaining others' behaviors.

Cognitive Dissonance

The mental discomfort experienced by an individual who holds two or more contradictory beliefs, ideas, or values at the same time.

Foot-In-The-Door

A persuasion technique where one starts with a small request to gain eventual compliance with larger requests.