Direct Regulation Is Inefficient Because

question 54

Multiple Choice

Direct regulation is inefficient because:

• A) affected firms ignore regulations, for example, by dumping toxic waste illegally.
• B) it does not take into account that the costs of reducing consumption are the same for all individuals.
• C) it does not take into account the fact that the costs of reducing consumption may differ among individuals.
• D) it does not take negative externalities into account.