How do legal controls on prices lead to corruption?
A)Persons who benefit from the controls are willing to bribe officials to keep the controls in place.
B)Persons who make the laws may favor certain groups at the expense of others.
C)Selling in the black market is very profitable, and persons therefore willingly break the law.
D)Discrimination may occur as a means to limit buying or selling select groups.
E)All of the above are correct.

Question

Quizplus · Accepted Answer

All of the above options can lead to corruption when legal controls on prices are imposed. Those who benefit from price controls may be willing to bribe officials to keep the controls in place. Those who make the laws may favor certain groups at the expense of others, creating an environment where corruption can thrive. Selling goods in the black market can become very profitable, incentivizing individuals to break the law. And, discrimination may occur to limit buying or selling to select groups, which can create opportunities for corruption as well.

How Do Legal Controls on Prices Lead to Corruption