How Do Command-And-Control Policies Differ from Incentive Systems

question 20

Multiple Choice

How do command-and-control policies differ from incentive systems?

• A)Command-and-control policies use marketlike strategies,whereas incentive systems do not.
• B)Command-and-control policies are typically more efficient than incentive systems.
• C)Command-and-control policies are typically more equitable than incentive systems.
• D)Command-and-control policies typically focus on punishing those who violate the law,whereas incentive systems often include rewards.

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Definitions:

Savings

Money set aside for future use rather than spending immediately.

Lump Sum

A single payment made at a particular time, as opposed to several smaller payments.

Compounded Semi-annually

Interest on an investment or loan is calculated and added to the principal sum twice a year.

Financial Functions

Mathematical expressions that are used to calculate interest, future values, present values, payments, and other financial metrics.