When the Government Chooses a Policy That Aligns Private Incentives

question 89

Multiple Choice

When the government chooses a policy that aligns private incentives with social efficiency to solve an externality problem,it

• A)provides incentives to private decisionmakers to induce them to solve the externality problem on their own.
• B)typically uses command-and-control techniques.
• C)uses taxes more often than subsidies.
• D)uses subsidies more often than taxes.

---

Definitions:

Self-mutilation

The act of deliberately hurting one’s own body without intending to cause death, often as a way to cope with emotional pain.

Borderline Personality

A mental disorder characterized by unstable moods, behavior, and relationships, often resulting from a fear of abandonment.

Suicide

The act of intentionally causing one's own death, often resulting from feelings of hopelessness, depression, or distress.

Narcissistic Personality Disorder

A mental condition characterized by a long-term pattern of exaggerated self-importance, the need for excessive attention and admiration, and a lack of empathy for others.