Which of the Following Statements Is True

question 26

Multiple Choice

Which of the following statements is true ?

• A) Competitive markets result in the socially efficient price and quantity when externalities exist.
• B) Command-and-control regulations set an environmental goal and dictate how the goal will be achieved.
• C) Economists prefer command-and-control regulations to incentive-based pollution programs.
• D) An effluent tax is a tax imposed on rich people.