If It Is Illegal for a Biochemical Manufacturer to Release

question 345

Multiple Choice

If it is illegal for a biochemical manufacturer to release its waste into a nearby stream,then this is an example of

• A) a market-based policy.
• B) a command-and-control policy.
• C) tradable pollution permits.
• D) transaction costs.

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Definitions:

Interest Rate

The percent of principal charged by the lender for the use of its money or the rate earned on deposits.

Loanable Funds

The funds available for borrowing in the financial markets, derived from the savings of individuals and institutions.

Price Floor

A price floor set by a government or an organization, establishing the minimum price that can be charged for a good, service, or resource.

Price Ceiling

A cap set by authorities on the maximum price that can be asked for a good or service.