Define the Following Terms and Explain Their Importance to the Study

question 60

Essay

Define the following terms and explain their importance to the study of economics.
a)minimum wage law
b)income and substitution effects
c)backward-bending labor supply curve
d)human capital theory
e)dual labor markets

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Definitions:

Bond

A fixed income investment in which an investor loans money to an entity (corporate or governmental) which borrows the funds for a defined period at a variable or fixed interest rate.

American Options

Financial derivatives that give the holder the right to buy or sell an asset at a set price at any time before the expiration date.

Expiration Date

The specific date after which a product is considered no longer usable or effective, often found on perishable goods and medications.

Convertible Bonds

Bonds that can be converted into a predetermined number of the issuing company's shares, usually at the discretion of the bondholder.