When the government uses a command-and-control policy to solve an externality, it
a. is usually the most effective policy option available.
b. creates policies that directly regulate behavior.
c. usually involves taxing the consumption of a commodity.
d. typically refers to the Coase theorem to structure the policy.
b
You might also like to view...
The potential for profit-increasing false advertising is greatest for which of the following goods?
A) disposable diapers B) a refrigerator C) laundry detergent D) spray window cleaner
The demand curve is kinked in oligopoly theory because firms will do which of the following?
a. Raise and lower prices together b. Raise prices together but not lower prices together c. Lower prices together and sometimes raise prices together d. Lower prices together only
Graphically, the producer surplus for a given demand curve is the total area: a. below the marginal social cost curve and above the market price. b. above the supply curve and below the market price
c. below the demand curve and above the supply curve. d. below the private cost curve and above the market price.
If a country with a fixed exchange rate is continuously losing foreign reserves, speculators will
A. speculate that the country's currency will be revalued. B. buy the country's currency and sell foreign currency. C. sell the country's currency and buy foreign currency. D. lend foreign currency to the country's central bank.