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The Command-And-Control Method to Solving an External Costproblem Usually Involves

Question 74

Multiple Choice

The command-and-control method to solving an external costproblem 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.(True Answer
) Correct
D) a price ceiling on the item that is causing an external cost.

Correct Answer:

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