If Price Controls Are So Harmful, Why Would a Country

question 246

Multiple Choice

If price controls are so harmful, why would a country ever impose them?

• A) No one really knows.
• B) Price controls are usually thought to be beneficial.
• C) Politicians have strong incentives to respond to public opinion with price controls when prices increase sharply.
• D) People usually see the consequences of price controls but think they will be a good policy.

---

Definitions:

Threshold

The minimum level of stimulation required to trigger a neural impulse or a response in a sensory system.

AChE

Acetylcholinesterase, an enzyme that breaks down acetylcholine, a neurotransmitter, in the synapse, terminating the signal between nerves.

Relaxation Phase

The phase in the cardiac cycle or muscle contraction where the muscle returns to its initial state of relaxation.

Sarcoplasmic Reticulum

A network of tubules and sacs in muscle cells that store and regulate calcium ions, crucial for muscle contraction.