The requirement that certain professionals possess a license in order to work in a particular market has the effect of reducing the supply of those services, which in turn causes:
A) price and the profits of firms in the market to increase.
B) price and the profits of firms in the market to decrease.
C) price to increase and the profits of firms in the market to decrease.
D) price to decrease and the profits of firms in the market to increase.
A
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According to the Rybczynski theorem, at constant world prices, if a country experiences a gain in its capital stock it will produce
A) more of the capital intensive good and less of the labor intensive good. B) more of both goods. C) less of the capital intensive good and more of the labor intensive good. D) less of both goods.
Increases in real GDP would understate the well-being of a country over time if, over that time period, the
A) crime rate increased. B) percentage of people addicted to illegal drugs increased. C) amount of pollution decreased. D) average hours worked per week increased.