High-Q | פסיכומטרי - מרתון

Text III (Questions 11-15)

Illegal and secret business transactions, that are conducted in violation of government restrictions on buying and selling, are known as black markets. The restrictions being avoided may consist of rationing, price control, or a total ban on sales of a specific product. The buyer’s objective is to obtain goods that cannot be obtained in legal markets or at legally established prices. The seller’s incentive is higher profits. 5 Black markets are most common during wars and immediately afterward. At such times, because of shortages in essential goods for consumers, virtually all governments regulate the prices and sometimes the quantities of goods available for purchase. Black markets flourish most in areas devastated by war, where prices may rise fantastically. But a black market may spring up even in peacetime whenever a government places controls on buying and selling. For instance, a 10 black market may arise in meat, butter, or other commodities if the officials of a centrally-controlled economy place market controls on them. Exclusive government control of the purchase and sale of foreign currencies can also encourage illegal transactions, despite huge penalties. legal market, and there are two sets of prices for the same general classes of products. A given buyer or seller may operate exclusively in the black market, especially if the black market is the only market for certain products in certain areas. Or buyers and sellers may operate only partially in a black market: a person might purchase a legal quantity of meat at a legal price and an additional quantity at an illegal price. 20 A black market is not a place but a set of illegal practices. Typically, it exists alongside a 15

מרתון ספר

353

High Q Global