Use the Following to Answer Questions

question 44

Multiple Choice

Use the following to answer questions :
Figure: The Demand for Bricklayers
-(Figure: The Demand for Bricklayers) Use Figure: The Demand for Bricklayers.The equilibrium market wage for bricklayers is $100 a day,but a minimum wage of $130 a day for bricklayers is set by the government.As a result:

• A) 6 workers will now be hired by the firm.
• B) 3 workers who would have been employed at the previous $100 market wage are now unemployed.
• C) all bricklayers are better off.
• D) construction firms will shut down.

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Definitions:

Yield To Maturity

The total return anticipated on a bond if the bond is held until its maturity date, considering all payments and the face value.

Intrinsic Value

The true, inherent, and underlying value of an asset, independent of its market price.

Zero-Coupon Bonds

A type of bond that does not pay periodic interest payments but is issued at a discount to its face value and matures at that face value.

Expected Interest Rate

The interest rate that investors anticipate will previal in the future, influencing current investment decisions and market prices.