Government Regulation Is

question 204

Multiple Choice

Government regulation is

• A) subject to the same problems of lack of information and lack of incentives for economic efficiency as centrally planned economies.
• B) the only reliable way to improve environmental quality.
• C) not subject to political concerns when it comes to environmental quality.
• D) the most economically efficient way to reduce greenhouse gases.

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Definitions:

Government Subsidy

Financial assistance given by the government to individuals, businesses, or institutions to support or encourage certain economic activities.

Supply

The total amount of a good or service available for purchase at any given price level, within a specified period.

Law of Demand

A fundamental economic principle stating that as the price of a product decreases, demand for it usually increases, and vice versa.

Surpluses

Situations in which the quantity of a good or service supplied exceeds the quantity demanded at the current price.