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:

Low-Income Countries

Nations with a gross national income per capita below a certain level, characterized by limited industrial development and low human development indicators.

Women's Status

Refers to the social and legal position of women in society, which can vary widely across different cultures and historical periods.

Dependency Theory

A perspective in international relations and economic development that examines how developed nations perpetuate the underdevelopment of developing nations through a dependence on the global capitalist system.

Former Colonies

Territories that were once governed and exploited by a foreign power but have since gained independence.