What Is the Difference Between Command-And-Control Policies and Market-Based Policies

question 147

Multiple Choice

What is the difference between command-and-control policies and market-based policies toward externalities?

• A)Command-and-control policies provide incentives for private decisionmakers to solve the problems on their own, whereas market-based policies regulate behavior directly.
• B)Command-and-control policies rely on taxes, whereas market-based policies rely on quotas.
• C)Command-and-control policies regulate behavior directly, whereas market-based policies provide incentives for private decisionmakers to change their behavior.
• D)Command-and-control policies are efficient, whereas market-based policies are inefficient.

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Definitions:

Operant Conditioning

A learning process in which the strength of a behavior is modified by the behavior's consequences, such as rewards or punishments.

Spanked

The act of striking someone, usually a child, on the buttocks as a form of punishment.

Behavior Change

The modification or transformation of human behavior, typically in a positive or desired direction.

Operant Conditioning

A method of learning that employs rewards and punishments for behavior, encouraging the subject to associate certain behaviors with certain consequences.