Question

_____________ lead to concentration of economic power in the hands of few, who then try to dominate and influence the economic activities of the nation.

• A. Hoarding
• B. Black marketing
• C. Both A & B
• D. Neither A nor B

Answer 1

Answer: (C)

Both A & B

• Hoarding in economics refers to maintaining unaccounted stocks of many commodities to save guard oneself from rise in general price level i.e. inflation or to take advantage of increased prices in the future, by creating artificial scarcity.
  
• Black market is an intangible market that deals in buying and selling of illegal products which are sold at very high prices which are not accounted by the government and transforms into black money.
• This leads to monopoly of the exploiters who are performing such acts in the economy which is unethical and against human virtue as it creates social and economic instability.