Price Controls Encourage Black Markets Because

question 95

Multiple Choice

Price controls encourage black markets because:

• A)they eliminate opportunity costs.
• B)individuals can profit by illegal exchanges.
• C)they create too much efficiency.
• D)they create too much equity.

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Definitions:

Expert

An individual with a deep, comprehensive knowledge or skill in a particular area or field.

Referent Power

A form of power that stems from being admired or respected, leading others to identify with the person who has referent power.

Identification

Conformity to a social norm prompted by perceptions that those who promote the norm are attractive or similar to oneself.

Job

A role or position that involves a set of tasks and responsibilities, typically in exchange for compensation.