Business > CASE STUDY > 4 2 Simulation checkpoint.docx ECO 201 Module Four Simulation Checkpoint Assignment EC (All)
4 2 Simulation checkpoint.docx ECO 201 Module Four Simulation Checkpoint Assignment ECO 201 Government Tools: Discuss tools available to the government to correct a market failure. Provide exampl... es from the textbook. ï‚·Command and control policies: This the act of an externality by requiring or forbidding certain behaviors. For instance, there are bans on cutting down trees. ï‚·Corrective taxes and subsidies: The government uses this tool by taxing activities that have negative externalities and subsidizing activities that have positive externalities. For example, the government uses these taxes and subsidizing techniques by taxing a company on a certain waste or rewarding a company for reducing the waste. ï‚·Tradable Pollution Permits: This is the act of allowing companies a permit to use or create a certain amount of pollution. In this case, a permit would allow a company to emit a certain amount of pollu. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [Show More]
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