Unnecessary Occupational Licensing Requirements in an Industry Tend to

question 85

Multiple Choice

Unnecessary occupational licensing requirements in an industry tend to

• A) increase the supply of the product.
• B) raise the price of the product.
• C) reduce the income of the suppliers.
• D) increase the demand for the product.

---

Definitions:

Incremental Risk

The additional risk that an investment or action brings to an investor's or company's overall risk profile.

Risk-Free Rate

The rate of return on an investment with no risk of financial loss, often represented by the yield on government Treasury bills.

Expected Market Rate

The forecasted rate of return anticipated by investors in the financial markets, based on current conditions and future projections.

Risk Premium

The extra return above the risk-free rate that investors require to hold a risky investment.