When policymakers impose price controls, they

A) are usually following the advice of mainstream economists.
B) usually improve the efficiency of economic activity.
C) distort the signals that normally guide the allocation of resources.
D) demonstrate a willingness to sacrifice equity in order to improve efficiency.

Price Controls

Government-imposed limits on the prices that can be charged for goods and services in the market to restrain prices to a certain level.

Economic Activity

Actions that involve the production, distribution, and consumption of goods and services within an economy.

Resource Allocation

The process of assigning available resources to specific uses chosen among many possible and competing alternatives.