What Is the Difference Between Command-And-Control Policies and Market-Based Policies

question 147

Multiple Choice

What is the difference between command-and-control policies and market-based policies toward externalities?

• A)Command-and-control policies provide incentives for private decisionmakers to solve the problems on their own, whereas market-based policies regulate behavior directly.
• B)Command-and-control policies rely on taxes, whereas market-based policies rely on quotas.
• C)Command-and-control policies regulate behavior directly, whereas market-based policies provide incentives for private decisionmakers to change their behavior.
• D)Command-and-control policies are efficient, whereas market-based policies are inefficient.

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Definitions:

Real Estate

Property consisting of land or buildings, and the natural resources of the land including uncultivated flora and fauna, farmed crops and livestock, water, and mineral deposits.

Mortgage Debt

The amount of money borrowed to purchase a property, which the borrower is obligated to repay with interest to the lender, typically secured by the property itself.

Equity of Redemption

The right of a borrower to reclaim their property pledged as collateral upon full repayment of the debt prior to foreclosure.

Foreclosure

The legal process by which a lender obtains the property used as collateral for a loan, typically due to the borrower's failure to make payments.