Unlike Command and Control, Taxes and Subsidies Allow Firms to

question 60

Multiple Choice

Unlike command and control, taxes and subsidies allow firms to

• A)respond to price or cost changes.
• B)avoid a free-rider problem.
• C)be socially responsible.
• D)raise prices but not output.
• E)lower their transactions costs.

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Definitions:

Unmarried Women

Women who are not legally married and may refer to individuals who have never been married, are divorced, or are widowed.

Second Bank

The Second Bank of the United States, established in 1816 and operated until 1836, was central to early disputes over states' rights and federal power.

Constitutional Authority

The powers vested in a governmental body or official by a constitution, defining the scope and limits of their legal powers.

Marshall Supreme Court

The period in United States history when John Marshall served as Chief Justice (1801–1835), noted for its landmark decisions that established the foundations of American constitutional law.