The manufacture and sale of CFCs in Australia is now banned. This is an example of a:

Question

Quizplus · Accepted Answer

The ban on the manufacture and sale of CFCs is an example of a command-and-control policy. This is because the government has issued a direct regulatory mandate that prohibits the production and sale of CFCs. This contrasts with market-based policies, such as tradeable permits, which allow firms to trade permits for emissions within a set limit. Transaction costs are the associated costs of carrying out economic transactions, such as the costs of negotiating and enforcing contracts.

The Manufacture and Sale of CFCs in Australia Is Now