Suppose the Government Limits the Number of Cabs That Can

question 5

Multiple Choice

Suppose the government limits the number of cabs that can operate in the city by issuing a limited number of medallions.Later,if the government decides to regulate fares instead and sets them below current levels:

• A)surpluses will result in the taxicab market.
• B)the resale value of the medallion will fall.
• C)the demand for taxicabs will decline.
• D)congestion during peak traffic hours will decrease.

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Definitions:

Identical Twins

Twins that share the same genetic makeup due to originating from one fertilized egg that divided into two separate embryos.

Siblings

Individuals who share one or both biological parents, often implying a familial relationship characterized by varying degrees of companionship, rivalry, and emotional bonds.

Intelligence Quotient

A measure of a person's cognitive abilities and potential, compared against a standardized score typically drawn from a variety of tests.

Gifted

The 2 percent of the population falling on the upper end of the normal curve and typically possessing an IQ of 130 or above.