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

question 78

Multiple Choice

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

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

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Definitions:

Formal Operations

In Piaget’s terms, mental operations in which all possible combinations are considered in solving a problem. Consequently, each partial link is grouped in relationship to the whole; in other words, reasoning moves continually as a function of a structured whole.

Appearance/Reality Distinctions

The cognitive ability to differentiate between how things appear and how they actually are.

Three-Year-Olds

Refers to children at the age of three, a development stage characterized by rapid growth in language, social interaction, and cognitive skills.

Answer Incorrectly

The act of providing a solution or response that does not accurately address or resolve the question or problem posed.