A Feedback from Low Real Wages to Low Productivity Could

question 18

Multiple Choice

A feedback from low real wages to low productivity could be caused by

• A)an increase in the labor force caused by more immigration.
• B)a reduction in the power of labor unions.
• C)a reduction in the real minimum wage.
• D)increased worker anxiety about job security.
• E)all of the above.

---

Definitions:

Exercise Price

The specified price at which the holder of an option can buy (for a call option) or sell (for a put option) the underlying asset.

Narrow Range

Refers to a situation where the difference between the high and low prices, values, or figures within a given period is relatively small.

Stock Price Declines

A reduction in the market price of shares representing ownership in a company.

Long Call

An options trading strategy that involves buying call options with the anticipation that the underlying stock will rise in value.