A Special License Is Required to Operate a Taxi in Many

question 15

Multiple Choice

A special license is required to operate a taxi in many cities.The number of licenses is restricted.More drivers want licenses than are issued.This describes a non-perfectly competitive market because

• A) taxi services are very different.
• B) firms cannot freely enter and exit the market.
• C) transaction costs are high.
• D) the government generates revenue from the licenses.

---

Definitions:

Communist Manifesto

A political pamphlet by Karl Marx and Friedrich Engels outlining the principles of communism and calling for the proletariat's uprising against the capitalist society.

Developed Capitalist Economies

Advanced economies with established financial markets, high levels of industrialization, and significant capital accumulation.

Allocating Resources

Refers to the process of distributing available resources among various competing needs and uses in an economy to achieve optimal outcomes.

Redistributing Income

A policy or process by which a government aims to adjust the distribution of income among its citizens, typically through taxation and welfare programs to reduce economic inequality.