A special license is required to operate a taxi in many cities. The number of licenses is restricted. More drivers want licenses than are issued. This describes a non-perfectly competitive market because
A) taxi services are very different.
B) firms cannot freely enter and exit the market.
C) transaction costs are high.
D) the government generates revenue from the licenses.
B
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Between the base period and the next period, prices stay constant. The GDP price index in the next period
A) cannot be calculated without knowing how much the quantity changed. B) is equal to 1 because there is no change. C) is equal to 50 because there is no change. D) will equal 0 because there is no change. E) is equal to 100 because there is no change.
A ________ monopoly sells different units of its good or service for ________
A) price-discriminating; different prices B) price-discriminating; the same price C) single-price; the same price D) single-price; different prices E) Both Answers A and C are correct.
The PIH predicts that temporary tax cuts would
A) be spent on consumer nondurables and services. B) be offset by an increase in the saving ratio. C) be offset by a decrease in the saving ratio. D) be treated the same as permanent tax cuts.
A corporation that operates in several countries, but produces all of its output in its domestic country, is called a(n)
a. sole proprietorship b. international partnership c. multinational corporation d. international corporation e. domestic corporation