The Basic Argument Against Wage and Price Controls Is That

question 24

Multiple Choice

The basic argument against wage and price controls is that

• A) they can be used only during periods of all-out war.
• B) as a solution to inflation, they are popular with economists, not with politicians or the general public.
• C) they require labor to take wage reductions before firms can reduce their prices.
• D) they are not helpful as a short-run remedy, although they do work effectively over the long run.
• E) they necessitate implementing other allocation schemes that often impair economic efficiency.

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Definitions:

Heteronomous Morality

A stage in moral development where one's understanding of rules and justice is based on external authority figures, such as parents or the law, rather than personal moral principles.

Preconventional Moral Reasoning

The first level in Kohlberg's theory of moral development, where moral reasoning is based on external consequences to the individual, such as punishment or reward.

Conventional Moral Reasoning

Conventional moral reasoning is the second level in Kohlberg's theory of moral development, where individuals make moral decisions based on societal rules and the expectations of others.

Conventional Moral Reasoning

A level of moral development where individuals make judgments based on conformity to conventional standards of right and wrong.