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.

Question

Quizplus · Accepted Answer

Economists are trained to provide analysis based on economic theory and data, but when it comes to determining whether a particular policy is good or bad, it is a normative judgment that is beyond their expertise, as it requires considering ethical, political, and social factors. Therefore, economists can provide information on the potential economic consequences of price controls, but it is up to policymakers and society to decide whether the benefits outweigh the costs.

Economists Are Reluctant to State That Price Controls Are Desirable