Price Controls Will Tend to Cause Misallocation of Resources Because

question 19

Multiple Choice

Price controls will tend to cause misallocation of resources because

• A) production (or opportunity) cost no longer corresponds to market price.
• B) people are unable to determine their preferences at the high or low price.
• C) producers no longer have incentive to be profitable.
• D) consumers no longer have incentive to spend their income efficiently.

---

Definitions:

Social Returns

The non-financial gains achieved by society from an investment, project, or initiative, such as improvements in well-being or equality.

Entrepreneurs

People who manage and run enterprises, assuming higher-than-average financial risks in the process.

YouTube

A video sharing service that allows users to watch videos posted by others and upload videos of their own, one of the world's most popular websites.

Video Tutorials

Educational or instructional videos designed to teach viewers about specific topics or skills.