Question

One alternative reaction occurs when buyers and seller decide to break the government rules on prices or sales, which is referred to as _______________.

Question 10 options:

	1) taxes
	2) black market
	3) side payments
	4) targeted subsidies

Answer 1

One alternative reaction occurs when buyers and sellers decide to break the government rules on prices or sales, which is referred to as Black Market.

Reason

Black market refers to a section of the economy where the government has no clue regarding the price or sales of goods and services as this type of market operates outside of laws, regulations, and taxes.

The example of this market can be, selling goods and services which are made illegal by the government.

Hence the second option is correct

1)Taxes - Tax refers to a contribution or a fee paid by individuals of the country to the government which the government collects as revenue and spends for the welfare of the country.

2) Subsidy - Subsidy refers to the sum which is paid by the government to the weaker sections of the society as support.

3) Side Payments - Side payments refer to the sum which a party pays to another party a difference amount to include in the transaction for which the other party is less interested. For example bribe