Are the owners of taxicabs in New York City earning large profits because the city severely restricts the number of licenses?
A) No, because the city also regulates fares.
B) No, because the cost of owning a license absorbs the potential profit.
C) Yes, because the number of licenses has not been increased for 50 years.
D) Yes, because if they were not the number of taxicabs would decline and profits would rise.
E) We cannot tell because profit arises from uncertainty.
B
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In the foreign exchange market, U.S. residents wishing to purchase foreign exports or foreign real and financial assets must:
A) demand U.S. dollars by supplying foreign currency. B) demand U.S. dollars by supplying U.S. dollars. C) supply U.S. dollars by demanding foreign currency. D) none of the above.
Which of the following is NOT a source of borrowings for a bank?
A) federal funds B) Eurodollars C) transaction deposits D) discount loans
Over the past two decades the U.S. balance on current accounts has
a. been in deficit b. generated surpluses c. been very erratic, swinging from deficits to surpluses to deficits d. essentially been in balance e. declined in importance compared to the balance on capital account
Ad valorem taxation means
A) that only the value added by a service provider is taxed. B) that the tax rate is a percentage of the price paid for a product. C) a negative income tax. D) a progressive property tax imposed in some states.