Incentive-Based Regulatory Approaches

question 3

Multiple Choice

Incentive-based regulatory approaches:

• A) are viewed favorably by most economists as a way to control pollution.
• B) provide less flexibility than the command-and-control approach.
• C) tend to hurt wealthier people more than poor people.
• D) require that the government specify certain types of pollution control technology that firms must adopt.

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Definitions:

Money Supply Curve

A graphical representation of the relationship between the money supply and the interest rate in an economy.

Excess Supply

A situation where the quantity of a good or service supplied is more than the quantity demanded at the current price.

Interest Rate

The amount charged, expressed as a percentage of principal, by a lender to a borrower for the use of assets over a specific period of time.

Gross Domestic Product

The monetary value of all finished goods and services made within a country during a specific period.