Command and Control May Be the Best Approach to Handling

question 253

Multiple Choice

Command and control may be the best approach to handling externalities if:

• A) flexibility is desired.
• B) the marginal social cost of the externality is greater than the social benefit.
• C) taxes and/or subsidies fail to reach the efficient outcome.
• D) success requires strong compliance.

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Definitions:

Dependent

An individual, usually a child or spouse, who relies on another person for more than half of his or her financial support and qualifies for potential tax benefits on the caregiver's tax return.

Tuition

The fee paid for instruction or teaching, typically charged by educational institutions for course enrollment.

Meal Plan

A pre-paid account or arrangement typically offered by institutions like colleges that allows students to pay in advance for meals at on-campus dining facilities.

Lifetime Learning Credit

A tax credit available to individuals who pay higher education costs, aimed at promoting lifelong learning.