Please expand on the text's given definition, using other relevant terms from the chapter, and also give a practical example of that key concept. Please don't simply supply the text definition. This is not what I want. I'm looking for your input showing a basic understanding of each "Key Concept". A 1 or 2 sentence answer is not acceptable, nor is a few bullet points. Show me you understand the concept.
- finance
- present value
- future value
- compounding
- risk aversion
- diversification
- firm-specific risk
- market risk
- fundamental analysis
- efficient markets hypothesis
- informational efficiency
- random walk
- labor force
- unemployment rate
- labor-force participation rate
- natural rate of unemployment
- cyclical unemployment
- discouraged workers
- frictional unemployment
- structural unemployment
- job search
- unemployment insurance
- union
- collective bargaining
- strike
- efficiency wages