If it is illegal for a biochemical manufacturer to release its waste into a nearby stream,then this is an example of
A) a market-based policy.
B) a command-and-control policy.
C) tradable pollution permits.
D) transaction costs.

Question

Quizplus · Accepted Answer

A command-and-control policy is a government-imposed regulation that restricts or mandates certain behaviors. In this case, it is a regulation that prohibits the biochemical manufacturer from releasing its waste into a nearby stream. This is in contrast to a market-based policy, such as tradable pollution permits, which give companies a financial incentive to reduce pollution. Transaction costs refer to the costs associated with making a market transaction, and are not relevant to this scenario.

If It Is Illegal for a Biochemical Manufacturer to Release