Question

When the government sets limits on ingredients found in prescription medications or on factory emissions, this would be an example of which of the following?

a. Doctrine
b. An initiative
c. Regulation
d. Deregulation
e. A referendum

Answer 1

Government limits on prescription medication ingredients and factory emissions are examples of regulation, specifically command-and-control regulation, which sets specific limits and standards businesses must adhere to.

Step-by-step explanation:

When the government sets limits on ingredients found in prescription medications or on factory emissions, this is an example of regulation. Regulation involves the government establishing rules or directives to control activities and ensure compliance, especially to maintain standards and safety. Examples include command-and-control regulations, which mandate specific limits for pollution emissions and may require firms to use particular pollution-control technologies. In contrast, market-oriented environmental tools create economic incentives for firms to reduce pollution, such as taxes on emissions or tradable permits.

Examples of Regulation Policies

• A state emissions tax on the quantity of carbon emitted by each firm (market incentive).
• The federal government requires domestic auto companies to improve car emissions by a certain year (command-and-control).
• The EPA sets national standards for water quality (command-and-control).