Command and control (sometimes called direct control) is when the government passes legislation specifically regulating an activity (typically because it leads to market failure). Decide if the items are true or false regarding this type of regulation. 1. Command-and-control is more flexible than market based regulation.
a. Trueb. False2. A command-and-control regulation is subject to political considerations.
a. True
b. False
3. Under command-and-control regulation, the government will sometimes specify the technology that firms must use in production.
a. True
b. False
4. Comman-and-control situations are always the best option when it comes to reducing the amount of pollution.
a. True
b. False
5. The government may decide on a specific amount of pollution that firms can legally emit.
a. True
b. False
6. A limitation of a command-and-control regulation is that firms have no incentive to remove pollution once they are within the legal pollution limits.
a. Trueb. False