Question

Definition of rationing and hoarding, effects, black market & it's effects

Answer 1

Answer:

Rationing -  the controlled distribution of scarce resources, goods, services, or an artificial restriction of demand.

Hoarding -  the practice of obtaining and holding resources in quantities greater than needed for one's immediate use.

Effect: Creating shortages of goods in the real economy.

Black Market - trade in illegal goods and services, legal goods and services to avoid taxes or both.

Effect: The shift in supply and demand causes the quantity consumed of the black market good to decrease, while the price rises.

Explanation: