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.