Final answer:
Voluntary exchange within private markets like the cell phone industry generally lacks simple controls, relying instead on price signals to drive decisions. When voluntary exchanges negatively impact third parties, externalities occur, which can justify regulatory intervention.
Step-by-step explanation:
The statement is false: with voluntary exchange, there are no simple controls on the activities of buyers and sellers. In a voluntary exchange system within private markets such as the cell phone industry, the primary controls are the decisions made by buyers and sellers based on price signals. The interlocking actions of consumers and producers reacting to prices help markets move towards equilibrium without the need for strict controls. However, when a voluntary exchange affects a third party who is not involved in the transaction, this is known as an externality, and it can lead to market failures if not addressed through regulations or other means.
Price controls are an example of a government intervention that can be considered counterproductive, as they interfere with the inherent messaging that prices provide in a free market. This is analogous to the proverb 'Don't kill the messenger,' where price signals are the messenger conveying crucial information needed for the proper functioning of markets.