Which of the Following Statements Regarding the Requirement That a Firm

question 5

Multiple Choice

Which of the following statements regarding the requirement that a firm be granted a license to operate in a particular market is false?

• A)Advocates of licensing maintain that the practice is necessary to maintain quality of service.
• B)One of the economic effects of a license requirement is to constrain the available supply of the affected good or service.
• C)The requirement that they be licensed ensures that the affected firms will be able to earn a positive economic profit.
• D)Relaxing certain licensing requirements should increase the supply of the affected good or service.

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Definitions:

Commons Dilemma

A situation where individuals, acting independently according to their own self-interest, deplete or spoil a shared resource, even though it is not in anyone's long-term interest.

Public Goods Dilemma

A situation in which individuals must choose between self-interest and collective interest, often in the context of sharing resources.

Practitioner

A healthcare professional who is licensed to diagnose and treat patients, which can include doctors, nurses, and therapists, among others.

Office Schedule

The planned or designated times for appointments, meetings, or availability in a professional setting.