The Ability of Factors to Migrate Abroad

question 92

Multiple Choice

The ability of factors to migrate abroad

• A) reduces the severity of unemployment and the fall in the rate of return available to investors.
• B) increases the severity of unemployment and the fall in the rate of return available to investors.
• C) reduces the severity of unemployment but increases the fall in the rate of return available to investors.
• D) cannot change the severity of unemployment and the constant rate of return available to investors.
• E) reduces the migration of highly-skilled workers.

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Definitions:

Risky Asset

An asset that has a significant degree of uncertainty in its returns, often leading to higher potential rewards and higher potential losses.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, indicating how much the individual data points differ from the mean.

Expected Rate

The anticipated return on an investment, factoring in the probability of various outcomes, including risks and rewards.

T-bill

Short for Treasury bill, a short-term government security issued at a discount from the par value and pays no interest before maturity, but is redeemed at its face value.