The Command-And-Control Method to Solving an External Costproblem Usually Involves

question 28

Multiple Choice

The command-and-control method to solving an external costproblem usually involves:

• A)the imposition of taxes on the consumption of the item that is causing the external cost.
• B)the institution of a subsidy on the consumption of the item that is causing the external cost.
• C)the issuance of a regulation on the production, operation, or use of the item that is causing an external cost.(True Answer
• )Correct
• D)a price ceiling on the item that is causing an external cost.

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Definitions:

Main Effect

In an experimental design, the direct impact of an independent variable on a dependent variable, disregarding the effects of other variables.

Simple Effect

The effect of one independent variable at a particular level of another independent variable in the context of more complex experimental designs.

Interaction Effect

The combined effect of two or more independent variables on a dependent variable that is different from the effect of each variable taken individually.

Main Effect

The impact of an independent variable on a dependent variable in an experimental design, disregarding the effects of other variables.