Economists Are Reluctant to State That Price Controls Are Desirable

question 33

Multiple Choice

Economists are reluctant to state that price controls are desirable or undesirable because

• A)it is impossible to evaluate the impact on quantity demanded and quantity supplied as a result of price controls.
• B)whether the gains from the winners exceed the losses from the losers is not strictly an economic question.
• C)sometimes price controls result in increases in economic efficiency and sometimes they result in decreases in economic efficiency.
• D)economists are reluctant to conduct positive analysis of price controls.

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Definitions:

Prenatal Care

Medical and healthcare provided to pregnant women to ensure the health and well-being of both the mother and the developing fetus.

Illegal Drugs

Substances whose production, sale, or possession is prohibited by law due to their potential harm to individuals and society.

Thalidomide

A medication introduced in the late 1950s that caused birth defects when taken by pregnant women, leading to a reevaluation of drug safety protocols.

Teratogenic Effect

The adverse effects on fetal development resulting from exposure to substances that can cause birth defects or malformations.