A Government Regulation That Bans the Use of a Certain

question 68

Multiple Choice

A government regulation that bans the use of a certain polluting technology in the production of a good is an example of a ________ used to solve an externality.

• A) social enforcement mechanism
• B) command-and-control approach
• C) market-based approach
• D) Coasian approach

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Definitions:

Partner

An individual or entity involved in a business enterprise with one or more other partners, sharing in the profits and losses of the business.

Agency Parties

Individuals or entities that enter into an agency relationship where one party (the agent) agrees to act on behalf of another party (the principal).

Beneficiary

An individual or entity entitled to receive benefits or proceeds from an insurance policy, trust, or will.

Third Party

An individual or group besides the two involved in a transaction or legal case.