When the Federal Government Orders Firms to Use Particular Methods

question 83

Multiple Choice

When the federal government orders firms to use particular methods to reduce pollution, it is said to be using

• A)command-and-control policies.
• B)strong-arm tactics.
• C)global initiatives.
• D)market-based policies.

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Definitions:

Industry's Demand

The total demand for all the products or services provided by a specific sector of the economy.

Marginal Decision Rule

A principle used in economics and decision-making that recommends comparing the additional benefits of a decision or action to its additional costs.

Downward Sloping

Characteristic of a graph indicating that as one variable increases, the other variable decreases, common in demand curves.

Demand

The quantity of a particular good or service that consumers are willing and able to purchase at various prices.