Command and Control May Be the Best Approach to Handling

question 253

Multiple Choice

Command and control may be the best approach to handling externalities if:

• A) flexibility is desired.
• B) the marginal social cost of the externality is greater than the social benefit.
• C) taxes and/or subsidies fail to reach the efficient outcome.
• D) success requires strong compliance.

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Definitions:

Null Hypotheses

The hypothesis that assumes no significant difference or relationship exists between specified populations or variables, used as a starting point for statistical testing.

2 × 2 Factorial ANOVA

A special case of factorial ANOVA that tests the effect of two independent variables, each having two levels, on a continuous dependent variable.

SES

Socioeconomic status, typically referring to an individual's or group's economic and social position in relation to others, based on income, education, and occupation.

2 × 2 ANOVA

A two-way analysis of variance test that involves two independent variables, each with two levels, used to determine their effect on a dependent variable.