Compared to legal markets, black markets have
A) products of higher quality.
B) higher prices.
C) lower profit rates.
D) less violence.

Question

Quizplus · Accepted Answer

Black markets often have higher prices due to the risks and costs associated with operating outside of the law. Additionally, there may be scarcity of goods available in black markets, driving up the price. The other options are not typically seen in black markets; products may be of lower quality due to lack of regulation, profit rates can be higher due to lack of taxes, and violence may be more prevalent due to lack of legal recourse for settling disputes.

Compared to Legal Markets, Black Markets Have