Which of the Following Is NOT a Problem That Occurs

Multiple Choice

Which of the following is NOT a problem that occurs when rules and regulations are used to control externalities?

A) Rules and regulations tend to eliminate rather than reduce externalities when reduction might be the better option.
B) Rules and regulations may focus on an easy-to-monitor way to achieve a goal rather than the best way to achieve it.
C) Rules and regulations tend to focus on the most extreme cases of an externality rather than the most common.
D) Rules and regulations may stifle innovation and discovery of how to achieve the rule's goal.