Reading 15: Markets in Action - LOS a, (Part 2) ～ Q1-3

答案和详解如下：

1.Compared to normal markets, the existence of fraud and the use of violence in black markets generally leads to:

A)   poorer economic efficiency.

B)   superior economic efficiency.

C)   lower profit rates for sellers.

D)   lower prices for sellers.

The correct answer was A)    

Fraud and violence lead to a lower level of economic efficiency in black markets. The black markets operate less smoothly. The sellers that are not caught can charge a higher price for the risks they take and earn a higher profit rate.

2.Under a price ceiling, bribery is a mechanism to:

A)   allocate a good to the poorest individuals in the market.

B)   allocate a good to the richest individuals in the market.

C)   bring the total price of a good (including the bribe) higher and closer to the equilibrium price.

D)   bring the total price of a good (including the bribe) lower and closer to the equilibrium price.

The correct answer was C)

A price ceiling is an upper limit on the price a supplier can charge. If the ceiling is below the equilibrium price, it can result in bribes as a rationing mechanism, whereas the total price of a good (including the bribe) is brought closer to the equilibrium price.

3.Which of the following describes a market for goods or services that operates outside the legal system, trading at prices that exceed legally imposed price ceilings?

A)   An incidental market.

B)   A black market.

C)   A utilitarian market.

D)   An asymmetrical market.

The correct answer was B)    

A black market is a market where trading takes place for legally prohibited goods or at prices that exceed legally imposed ceiling prices.