Question

High prices keep out the masses and justify the high taxes, in a vicious circle that
raises transaction costs and in the economy.
a) Inefficiencies
b) Intransigencies
c) Insufficiencies
d) Inconstancies

Answer 1

Answer:

a) Inefficiencies

Explanation:

a) Inefficiencies

Answer 2

The correct option is d) Inconstancies.

Explanation:

• In a vicious spiral that raises transaction costs and inconsistencies in the economy, high prices keep the masses out and justify high taxes.
• Variation or divergence from a base level is referred to as inconstancy.
• We cannot have a steady economic trend due to high prices and high taxes, because the economy is not only controlled by elites, but also by the general public, and higher prices would reduce the contribution of the general public, resulting in a downward trend in the economy.