What Can Be Said When the Government Reverts to a Command-And-Control

question 137

Multiple Choice

What can be said when the government reverts to a command-and-control policy to solve an externality

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

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Definitions:

Statutory Law

Written laws passed by a legislative body at both the federal and state levels; also known as statute law.

Overturning Precedent

The act of a court setting aside a previous judicial decision, often leading to a change in case law.

Common Law

A body of unwritten laws based on legal precedents established by the courts, as opposed to statutory laws enacted by legislative bodies.

U.S. Constitution

The supreme law of the United States, establishing the framework of national government and the rights and freedoms of individuals.