In the Labor Market, an Increase in Labor Productivity ________

question 96

Multiple Choice

In the labor market, an increase in labor productivity ________ the real wage rate and ________ the level of employment.

• A) raises; increases
• B) raises; decreases
• C) lowers; increases
• D) lowers; decreases

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Definitions:

Expense Ratio

A measure depicting the percentage of a fund's assets that are used for administrative and other operating expenses, directly affecting investors' returns.

Mutual Fund

An investment company pooling and managing funds of investors.

Significant Leverage

Utilization of borrowed money or financial instruments to increase the potential return of an investment.

Hedge Funds

Investment funds that use advanced strategies, including leverage, derivatives, and short selling, aiming for high returns.