Examlex
Which of the following statements is true?
Pigovian Tax
A tax imposed on activities that generate negative externalities, intended to correct an inefficient market outcome by being equal to the social cost of the externalities.
Command-And-Control
Command-and-control refers to a regulatory approach where the government directly stipulates what actions are required for compliance, often seen in environmental regulation.
Market-Based
Economic systems or policies that are reliant on the forces of supply and demand rather than governmental interventions to allocate resources.
Command-And-Control Policies
Government interventions that directly regulate permissible levels of emissions or methods of production, through mandates or restrictions.
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