Question 11
Price DeterminationWhich of the following is not an advantage of price control?
- A.Control of inflation
- B.Distortion of price mechanism
- C.Prevention of exploitation
- D.Control of producer's profit
- E.Helping low income earners.
Show the answer and explanation
Answer: B (Distortion of price mechanism)
Explanation
Distorting the price mechanism is a disadvantage of price control; the other options are its aims or benefits.