Once one accounts for time costs and bribes, it may be more expensive to make purchases at the government-controlled price than at the free-market price.

Question

Quizplus · Accepted Answer

When one accounts for the additional costs and bribes required to purchase goods at government-controlled prices, it may end up being more expensive than buying the same goods at the free-market price. This is especially true in countries where corruption is rampant and market distortions are common.

Once One Accounts for Time Costs and Bribes, It May