When the Government Uses a Command-And-Control Policy to Solve an Externality

question 213

Multiple Choice

When the government uses a command-and-control policy to solve an externality, it

• A)is usually the most effective policy option available.
• B)creates policies that directly regulate behavior.
• C)usually involves taxing the consumption of a commodity.
• D)typically refers to the Coase theorem to structure the policy.

---

Definitions:

Panic Catastrophizing

An exaggerated negative reaction to or anticipation of distressing events, often seen in anxiety disorders, where the individual believes the worst-case scenario will happen.

Non-associative Model

A theory in learning that explains how an organism's behavior towards a stimulus changes in the absence of any association with positive or negative reinforcement.

Evolution

The process by which different kinds of living organisms are thought to have developed and diversified from earlier forms.

Stimuli

External factors or events that elicit a response from a biological organism.