An apartment complex imposes a rule prohibiting loud noise from 9 p.m. until 7 a.m. This is an example of using _____ to reduce externalities from noise.

Question

Quizplus · Accepted Answer

A rule imposed by an apartment complex is an example of a company rule or a private agreement. It is not a government regulation, corrective tax, or cap and trade program as those are all forms of government intervention or policy tools. The apartment complex is using a private agreement to reduce the externality of noise and maintain a peaceful living environment for its residents.

An Apartment Complex Imposes a Rule Prohibiting Loud Noise from 9