Which of the Following Would an Economist Identify as a Difficulty

question 33

Multiple Choice

Which of the following would an economist identify as a difficulty relating to environmental command-control regulations?

• A) high degree of inflexibility
• B) clear distinctions drawn between firms
• C) lack of incentive to reduce pollution
• D) obvious lack of loopholes

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Definitions:

Circular-Flow Diagram

An illustrative depiction of the economy demonstrating the circulation of currency among markets, households, and companies.

Firms

Firms are business organizations engaged in industrial, commercial, or professional activities, aiming to generate profits.

Circular Flow Model

An economic model that depicts the continuous flow of money, goods, services, and factors of production between households and businesses in an economy.

Economy

An arrangement for creating, distributing, and using goods and services within a specified geographic region.