In a Certain City, the Local Government Regulates the Destruction

Multiple Choice

In a certain city, the local government regulates the destruction of historic buildings and provides tax breaks to owners of historic buildings who restore them. These government policies

A) reflect the fact that restored historic buildings convey a positive externality.
B) reflect the fact that the destruction of historic buildings conveys a positive externality.
C) are likely to worsen the market failure that is associated with historic buildings and the restoration of such buildings.
D) are likely to decrease the well-being of society as a whole.