tate whether each situation is consistent with a command-and-control or market-b
ID: 2440166 • Letter: T
Question
tate whether each situation is consistent with a command-and-control or market-based approach to energy conservation.
1) The government requires automobile manufacturing companies like Ford, Toyota, and Honda to place a "miles per gallon" sticker on new cars.
A. Market-based approach
B.Command-and-control approach
2) The price of gasoline increases at the pump.
A.Command-and-control approach
B. Market-based approach
3) Government mandates that the speed limit on all major highways be 55 mph.
A. Market-based approach
B.Command-and-control approach
4) Tax credits are given for more cost efficient energy sources such as solar panels.
A. Market-based approach
B. Command- and-control approach
5) People install more energy efficient air conditioners.
A. Command-and-control approach
B. Market-based approach
Explanation / Answer
If the government controls the market or makes direct decisions of the market,then the market is command based.If the market is managed by the behaviour of the demand and supply curve,then the market is free market.
1.Command and control
2.Market based.
3.Command and control
4.command and control
5.Market based
People install more air conditioners because the demand may have risen.
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