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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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