An Example of a Policy That Is Not Designed to Reduce

question 2

Multiple Choice

An example of a policy that is not designed to reduce the output of the activity creating the negative externality is a:

• A) congestion charge.
• B) policy that restricts the fishing activity.
• C) competition policy.
• D) policy that creates property rights.

---

Definitions:

Simultaneous Game

A game in game theory where all players make their decisions and moves at the same time without knowledge of the other players' choices.

Payoff

The outcome or reward received as a result of a particular action or decision, often used in the context of games or economic scenarios.

Cooperative Strategy

A cooperative strategy is a collaborative effort between businesses or organizations to achieve a mutual goal or advantage.

Efficient Outcome

A situation where resources are allocated in a way that maximizes net benefits to society and cannot be improved upon by making any one individual better off without making someone else worse off.