Even if the City Council fixed high minimum taxi fares and gave licenses to operate to only a few cab owners, license holders would not earn large profits from operating taxis in the city because
A) people would drive their own cars.
B) people would substitute buses for taxis.
C) taxis are not a necessity of life.
D) the cost of owning a license would eat up the potential profits from operating a taxi.
E) the demand would fall as taxi fares rose.
D
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"Brain-drain" refers to the:
A. Relatively low levels of human capital in low-income countries B. Impact of migration on human capital levels in high-income countries C. Emigration of highly educated workers to higher income countries D. Inability of workers in low-income countries to achieve the levels of human capital possessed by workers in high-income countries.
Suppose that during a given month 500,000 persons quit their job to become self-employed. This will cause
A) the unemployment rate to fall. B) the unemployment rate to rise. C) payroll employment to rise. D) payroll employment to fall. E) no change in either the unemployment rate or payroll employment.
The Phillips curve illustrates the relationship between:
a. change in the money supply and change in unemployment. b. tax rates and tax revenues. c. the equilibrium level of income and the employment rate. d. inflation and unemployment.
The slope of the consumption function is equal to the marginal propensity to save (MPS).
a. true b. false