Governments Continue to Impose Price Controls

question 136

Multiple Choice

Governments continue to impose price controls.Which statement is NOT a valid reason for this?

• A)Some people do benefit from such price controls.
• B)People fear that prices will change dramatically if the price controls are removed.
• C)It is politically expedient to enact regulations that benefit influential voting groups.
• D)Price controls are always effective.

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Definitions:

Excessive Growth

Rapid expansion of an economy or a sector within an economy, often leading to concerns about sustainability and inflation.

Keynesian Economists

Economists who believe in the economic theories of John Maynard Keynes, emphasizing the role of government intervention in the economy.

Private Sector

The private sector encompasses businesses and activities not owned or directly managed by the government.

Supply-Side Economists

Economists who believe that reducing taxes and decreasing regulation will stimulate economic growth by encouraging investment, production, and employment.