How can heavy rules and price controls hurt long-term output?
AThey raise every wage
BThey cut the urge to invest
CThey create more buyers
DThey end all taxes
Answer & Solution
Correct answer: B. They cut the urge to invest
If producers cannot earn adequate returns, they will not invest in better seeds, irrigation or technology.
Keep practising Markets and Price Mechanisms
Browse all Markets and Price Mechanisms questions for CBSE Class 9, or explore more Social Science topics.
Related questions
A cheaper way to grow wheat raises supply at every price. What happens to the equilibrium If demand increases and the supply curve stays put, what happens to equilibrium price and In economics, what is a movement along a demand curve called?Many permits for food safety, fire safety and pollution control burden which group most?The government fixes wheat at ₹20 per kg while the market price is ₹30. What may follow?Each family hopes others will pay for a park, so too little is raised. What follows?Why do private companies usually avoid providing public goods?Which of these is a public good?