While distributive policy has diffuse costs and concentrated benefits, this policy features concentrated costs and diffuse benefits. For example, large corporations paying taxes for their carbon emissions equals greater air quality for all individuals.

While distributive policy has diffuse costs and concentrated benefits, this policy features concentrated costs and diffuse benefits. For example, large corporations paying taxes for their carbon emissions equals greater air quality for all individuals.

• A. Distributive policy
• B. Regulatory policy
• C. Redistributive policy
• D. Social policy

Answer: (B)

Regulatory policy centers on rules and standards that control behavior to achieve a public goal. The costs are borne by those regulated—often a specific group like large corporations—while the benefits are spread across society. In the carbon emissions example, corporations pay taxes or meet emission rules, but everyone enjoys cleaner air and better health. That combination—concentrated costs on a few actors with diffuse benefits for the public—fits regulatory policy best. Distributive policy tends to diffuse the costs while concentrating the benefits for a particular group, redistributive policy shifts resources from one group to another, and social policy is a broader umbrella not defined by this cost-benefit pattern.

Regulatory policy centers on rules and standards that control behavior to achieve a public goal. The costs are borne by those regulated—often a specific group like large corporations—while the benefits are spread across society. In the carbon emissions example, corporations pay taxes or meet emission rules, but everyone enjoys cleaner air and better health. That combination—concentrated costs on a few actors with diffuse benefits for the public—fits regulatory policy best. Distributive policy tends to diffuse the costs while concentrating the benefits for a particular group, redistributive policy shifts resources from one group to another, and social policy is a broader umbrella not defined by this cost-benefit pattern.