When an Occupation Is Licensed

question 33

Multiple Choice

When an occupation is licensed,

• A) consumers can be assured that the quality of the product or service will be high.
• B) the regulators issuing the licenses can be counted on to serve the interests of consumers.
• C) the licensing will often be used to limit entry and the competitiveness of the market.
• D) political factors will not influence the standards and procedures for receipt of a license.

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Definitions:

Indexed

A term referring to the adjustment of income, benefits, or prices in accordance with changes in a price index, typically to preserve purchasing power.

Inflation

A sustained increase in the general price level of goods and services in an economy over a period of time, leading to a decrease in the purchasing power of money.

Fed Tightened

Refers to the Federal Reserve's actions to reduce the money supply and raise interest rates to control inflation.

Monetary Policy

The actions of a central bank, currency board, or other regulatory committees that determine the size and rate of growth of the money supply, which in turn affects interest rates.