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:

Commission Compensation Plan

A pay structure where employees earn a percentage of the sales they generate, incentivizing higher performance and sales.

Earnings

The amount of profit that a company produces during a specific period, often used as an indicator of the company's financial health.

Fixed Fee

A pricing structure where a single, specific amount is charged for a service or product, regardless of usage or time required.