When the Government Reverts to Command-And-Control Policy to Solve an Externality

question 113

Multiple Choice

When the government reverts to command-and-control policy to solve an externality, it:

• A)is usually the most effective policy option available
• B)creates policies that directly regulate behaviour
• C)usually involves taxing consumption of a commodity
• D)typically refers to the Coase theorem to structure the policy

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