In reality, it is more difficult to correct externality problems by using command and control than by using taxes.

Question

Quizplus · Accepted Answer

Command and control policies, such as regulations and mandates, can be difficult to enforce and may not effectively target the source of the externality. On the other hand, taxes can provide a more efficient and targeted solution by directly influencing the behavior of producers and consumers without being overly restrictive.

In Reality, It Is More Difficult to Correct Externality Problems