The Justification for Occupational Licensing Laws Is That They Protect

question 99

Multiple Choice

The justification for occupational licensing laws is that they protect the public from incompetent practitioners (for example, lawyers and medical doctors) , but the laws also result in

• A)higher prices and restrictions on the number of people who can enter the professions affected by the laws.
• B)economies of scale.
• C)ownership of a key input.
• D)an increase in the amount of output required to achieve minimum efficient scale.

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Definitions:

Mutual Fund

A mutual fund is an investment vehicle made up of a pool of funds collected from many investors to invest in securities like stocks, bonds, money market instruments, and other assets.

Annual Return

The percentage gain or loss on an investment over a one-year period.

Graduation

This term is typically associated with the completion of a course of study at an educational institution, marked by the receipt of a diploma or degree.

Discount Rate

The interest rate used to determine the present value of future cash flows in discounted cash flow analysis. It reflects the time value of money and investment risk.