If Price Controls Are So Harmful, Why Would a Country

question 137

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 the public 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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Definitions:

Reticular Activating System

A network of neurons located in the brainstem that regulates wakefulness and sleep-wake transitions.

Falling Asleep

The process by which a person transitions from wakefulness to sleep.

REM Sleep

A sleep stage characterized by rapid eye movement, dreaming, and increased brain activity.

NREM Sleep

Non-Rapid Eye Movement sleep, a restorative sleep phase characterized by reduced physiological activity and is divided into stages reflecting depth of sleep.