What can be said when the government reverts to a command-and-control policy to solve an externality
A)It is usually the most effective policy option available.
B)It creates policies that directly regulate behaviour.
C)It usually involves taxing consumption of a commodity.
D)It typically refers to the Coase theorem to structure the policy.

Question

Quizplus · Accepted Answer

A command-and-control policy involves directly regulating behavior through policies such as regulations, standards, or bans. It may not be the most effective policy option and does not necessarily involve taxing consumption or refer to the Coase theorem.

What Can Be Said When the Government Reverts to a Command-And-Control