Question

Which statement about the Russian black market economy is not true?

1. The Russian black market arose after the government ended price controls.
2. The Russian black market has strict formal laws
3. The Russian black market arose because of runaway inflation.
4. The Russian black market has surpassed the regular market.

Answer 1

The False statement about the Russian Black Market : 2) The Russian Black Market has strict formal laws. All the other 3 statements are true. People cannot buy as much as they would like at the control prices, and often, it is only a lucky few with inside connections that could get to buy at the control prices. Those without any inside connections must go to the black market.