What Is the Difference Between Command-And-Control Policies and Market-Based Policies

Multiple Choice

What is the difference between command-and-control policies and market-based policies toward externalities?

A) Command-and-control policies provide incentives for private decisionmakers to solve the problems on their own, whereas market-based policies regulate behavior directly.
B) Command-and-control policies rely on taxes, whereas market-based policies rely on quotas.
C) Command-and-control policies regulate behavior directly, whereas market-based policies provide incentives for private decisionmakers to change their behavior.
D) Command-and-control policies are efficient, whereas market-based policies are inefficient.