Reducing Pollution by Regulating What Firms or Individuals Produce Is

question 93

Multiple Choice

Reducing pollution by regulating what firms or individuals produce is a classic example of

• A)command and control.
• B)free-riding.
• C)transactions costs.
• D)private remedies.
• E)the importance of assigning private property rights.

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Definitions:

Monetarism

An economic theory which argues that the management of the economy should be primarily based upon adjustments to the monetary supply, by governmental policies.

Obsession

A persistent and intrusive thought or idea that preoccupies a person's mind, often leading to compulsive behavior.

Quantity Theorists

Economists who believe that the quantity of money available in an economy significantly affects its price levels and inflation rates.

Inflation

The rate at which the general level of prices for goods and services is rising, leading to a decrease in the purchasing power of money.