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.

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