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In the past the federal government often employed what is called a "command-and-control" approach ...

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In the past the federal government often employed what is called a "command-and-control" approach ...

Question 1.

When Airbnb customers in Malibu start paying hotel taxes, this will have the potential to raise the equilibrium price in this market and, therefore, decrease efficiency. This would have a tendency to

▸

increase consumer surplus and increase producer surplus.

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maximize consumer surplus and minimize producer surplus.

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decrease consumer surplus and increase deadweight loss.

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decrease producer surplus and decrease deadweight loss.

Question 2.

In the past the federal government often employed what is called a "command-and-control" approach to the reduction of pollution emissions. Many economists are critical of this approach because

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it does not lead to significant reductions in pollution.

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the "command-and-control" approach is designed to help firms at the expense of consumers.

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they believe a market-based approach will reduce pollution more efficiently.

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the "command-and-control" approach leads to negative externalities.

Textbook

InMicro

Edition: 1^st

Authors: Hubbard, O'Brien

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Izzy122 Author

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Good timing, thanks!

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