When the government reverts to command-and-control policy to solve an externality, it:
A)is usually the most effective policy option available
B)creates policies that directly regulate behaviour
C)usually involves taxing consumption of a commodity
D)typically refers to the Coase theorem to structure the policy

Question

Quizplus · Accepted Answer

Command-and-control policy directly regulates behavior, often through regulations or laws.

When the Government Reverts to Command-And-Control Policy to Solve an Externality