The Advantage of Using Command and Control to Solve an Externality

question 36

Multiple Choice

The advantage of using command and control to solve an externality problem is that:

• A) it is inflexible, and some problems require an inflexible approach.
• B) it is a very flexible approach.
• C) it solves the problem efficiently without the government requiring very much information.
• D) it is usually the least costly approach.

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Definitions:

United States

A country located primarily in North America, consisting of 50 states and a federal district.

Hats

A headwear item designed for various purposes including protection from weather, ceremonial reasons, religious reasons, safety, or fashion.

Production

The method of integrating different physical and non-physical inputs, such as materials and ideas, to produce goods for use.

Opportunity Costs

Missing out on potential benefits from various options due to the selection of a single alternative.