Which Statement Explains the Difference Between Command and Control Policies

question 98

Multiple Choice

Which statement explains the difference between command and control policies and tradable allowances?

• A) Command and control policies are a government solution to externalities, whereas tradable allowances are a type of private market solution.
• B) Tradable allowances allow for less flexibility than command and control policies.
• C) Command and control policies require all firms to reduce pollutants by a specific quantity, whereas tradable allowances allow some firms to pollute more than others by trading for pollution rights.
• D) Tradable allowances sometimes result in higher overall levels of pollutants because firms can simply purchase the rights to pollute more, whereas the quantity of pollution is fixed under command and control.

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Definitions:

Sex Glands

Organs in the body that produce sex hormones and gametes, playing a crucial role in reproduction and hormonal balance.

Limbic System

A sophisticated arrangement of neural circuits and systems within the brain, playing a key role in natural instincts and emotional states, managing primary emotions and desires.

Hypothalamus

A region of the brain that plays a crucial role in many essential functions, including hormone release, regulation of body temperature, and managing hunger and thirst.

Nucleus Accumbens

A region of the brain involved in the reward circuit, associated with pleasure, reinforcement learning, and addiction.