In Terms of Labour Supply,the Substitution Effect of a Higher

question 31

Multiple Choice

In terms of labour supply,the substitution effect of a higher wage causes a(n) :

• A) increase in leisure time.
• B) increase in the quantity of labour supplied.
• C) substitution of leisure for work.
• D) reduction of work time to zero.

Understand the concept of the Capital Allocation Line (CAL) and calculate its slope.

Analyze the composition of a global minimum variance portfolio.

Calculate the expected rate of return and standard deviation of a portfolio.

Understand and calculate covariance between two securities.

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Definitions:

Income Statement

A financial statement that reports a company's financial performance over a specific accounting period, detailing revenues, expenses, profits, or losses.

Trading Securities

Financial instruments that are purchased primarily for selling in the near term with the intention of generating profit from short-term price fluctuations.

Fair Value

The amount one would get from selling an asset or the cost to transfer a liability during a well-structured deal between participants in the market at the time of evaluation.

Profit Margin

A financial metric that evaluates a company's profitability by comparing net income to sales.