Command and control refers to:
A) military maneuvers that actually increase economic efficiency.
B) government regulations that directly limit the production or use of a good.
C) a market-based solution to the externality problem.
D) government taxes and/or subsidies in markets that generate externalities.

Question

Quizplus · Accepted Answer

Command and control refers to government regulations that directly limit the production or use of a good. This approach is often seen as necessary when there are significant negative externalities associated with the production or use of a good, and the market-based solutions (such as taxes or subsidies) are not enough to address the issue. Examples of command and control regulations include limits on pollution emissions or mandatory safety standards for certain products.

Command and Control Refers To