Which of the Following Is Not a Policy Implication of the Traditional

question 37

Multiple Choice

Which of the following is not a policy implication of the traditional model?

• A) For the most part, the government needs to stay out of people's way and let them trade.
• B) There is a potential role for government if there are positive externalities.
• C) The government should take moral and social incentives into account when considering intervention.
• D) There is a potential role for government if there are negative externalities.

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Definitions:

Overlapping Spheres

Conceptual representation of how different parts or spheres of an ecosystem or the Earth intersect and interact with each other.

Lithosphere

The rigid outer layer of the Earth, composed of the crust and the upper part of the mantle.

Biosphere

The spherical zone that includes life and all of the places life can exist on, below, and above Earth’s surface.

Rapid City Flood

A catastrophic flood event that occurred in Rapid City, South Dakota, in 1972 due to heavy rainfall.