Government Can Be Used to Solve Externality Problems That Are

question 58

True/False

Government can be used to solve externality problems that are too costly for private parties to solve.

---

Definitions:

Federal Trade Commission

A U.S. federal agency tasked with protecting consumers and promoting competition by preventing anticompetitive, deceptive, and unfair business practices.

Telemarketing Sales Rule

A regulation established to protect consumers from deceptive, abusive, or unfair telemarketing practices, including requirements on disclosures and consent.

Mail or Telephone Order Merchandise Rule

A Federal Trade Commission rule that requires sellers who solicit buyers through mail or phone orders to ship items within the time frame promised or, if no time is promised, within 30 days.

Mail-Order Sales

A sales process where products are ordered through mail correspondence or online and shipped directly to the consumer's address.