Question

When the federal government specifies the minimum level of fuel efficiency for internal combustion engines in automobiles, it is employing a(n) _________________________________.

Pigouvian tax.

A command and control policy.

Common resource.

Pigouvian subsidy.

Answers

GPT-4o mini
When the federal government specifies the minimum level of fuel efficiency for internal combustion engines in automobiles, it is employing a(n) **command and control policy**.