Why might a public regulation sometimes be a crude means of rectifying externalities?
A)It reduces productivity.
B)It restricts individual choice.
C)It often imposes a single solution on many different problems.
D)It is too costly.

Question

Quizplus · Accepted Answer

Public regulations, by their nature, are broad-based and often impose a single solution to address many different problems. This one-size-fits-all approach can be crude and ineffective in addressing complex externalities that require more nuanced solutions. Additionally, regulations can be costly to enforce and can restrict individual choice, further limiting their effectiveness. Therefore, public regulations are sometimes a crude means of rectifying externalities.

Why Might a Public Regulation Sometimes Be a Crude Means