Answer:
a) has a significant effect on the unemployment rate since a large part of the labor force earns the minimum wage.
Explanation:
The minimum wage law ensures that all employees have a minimum income to live with dignity. Although there is a big debate among economists, the liberal current suggests that the minimum wage law has a major impact on the unemployment rate, especially among the poorest. According to these economists, the minimum wage is instituted above the productivity level of most people, which causes companies to lose efficiency. If wages were fluctuating, according to market law, more workers would probably be hired for wages tied to their productivity. Therefore, among the options, the first seems to be the most correct.
The question is incomplete. Here is the complete question.
Caribou Gold Mining Corporation is expected to pay a dividend of $6 in the upcoming year. Dividends are expected to decline at the rate of 3% per year. The risk-free rate of return is 5%, and the expected return on the market portfolio is 13%. The stock of Caribou Gold Mining Corporation has a beta of .5. Using the constant-growth DDM, the intrinsic value of the stock is _________. A. $150 B. $50 C. $100 D. $200
Answer:
$50
Explanation:
Caribou Gold mining corporation is expected to make a dividend payment of $6 next year
Dividend are expected to decline at a rate of 3%
= 3/100
= 0.03
The risk free rate of return is 5%
= 5/100
= 0.05
The expected return on the market portfolio is 13%
= 13/100
= 0.13
The beta is 0.5
The first step is to calculate the expected rate of return
= 0.05+0.5(0.13-0.05)
= 0.05+0.5(0.08)
= 0.05+0.04
= 0.09
Therefore, the intrinsic value of the stock using the constant growth DDM model can be calculated as follows
Vo= 6/(0.09+0.03)
Vo= 6/0.12
Vo= $50
Hence the intrinsic value of the stock is $50
Answer:
False
Explanation:
Arbitrage refers to buying and selling stocks, commodities, bonds, currencies, or any other type of security. This process is carried out simultaneously, and a profit is made when the purchase price is lower than the selling price. E.g. a trader that purchases gold from a European seller and immediately sells it to an Asian buyer at a slightly higher price.
As technology advances, arbitrage has become more difficult to carry out because information is available to everyone. Before, a company could purchase a good (e.g. beef) in Texas and sell it at a higher price to a buyer in New York.
Answer:
d.teenagers is much higher than that of adults.
Explanation:
Unemployment refers to individuals that are employable and seeking to work but have not been able to get jobs.
In the economy it is found that the unemployment rate of teenagers is much higher than that of adults. Youths are 3 times more likely to be unemployed compared to adults. The global your unemployment rate is 13% compared to that of adults which is 4.3%.
This high rate of unemployment iamong youths can be attributed to the following factors: inadequate qualifications, lack of graduate jobs, cyclical unemployment, geographic unemployment, and in case of underground economy.
A monopolistically competitive firm is currently producing the profit-maximizing level of output. If the price of a variable input increases, the firm’s average total cost and marginal cost curves will shift upward.
Option C
<u>Explanation:
</u>
Monopolistic competition is a sort of incomplete competition that requires multiple companies to sell a product which is distinct and thus not ideal alternatives.
Monopoly competition is a framework of the market that integrates monopoly aspects and market competition. A dynamic monopoly market basically has freedom of entering and exiting, but businesses can distinguish between their goods.
We get an inelastic curve of demand and therefore can set the prices. Nevertheless, because the right to participate would allow supernormal incentives to more businesses to gain market share, which will result in regular long-term profits
.
