The Command and Control Method to Solving an External Cost

question 176

Multiple Choice

The command and control method to solving an external cost problem usually involves:

• A) the imposition of taxes on the consumption of the item that is causing the external cost.
• B) the institution of a subsidy on the consumption of the item that is causing the external cost.
• C) the issuance of a regulation on the production, operation, or use of the item that is causing an external cost.
• D) a price ceiling on the item that is causing an external cost.

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Definitions:

Familiarity

Familiarity refers to the level of knowledge or recognition an individual has about something through repeated exposure or experience.

High-Performance Teams

Teams characterized by a high level of collaboration, innovation, and productivity toward achieving specific goals.

Multiple Tasks

Engaging in multiple tasks simultaneously or sequentially within a given timeframe, requiring effective time management and prioritization skills.

Perfect Order

An order that meets all predefined criteria of the customer without any errors through the entire supply chain.