Bachelor of General Studies (BGS) Degree Practice Exam

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What do public policy tools generally involve?

Increasing taxes only
Incentives and penalties
Only public funding
Only legal enforcement

The correct answer is: Incentives and penalties

Public policy tools typically involve a range of mechanisms that governments can use to achieve desired outcomes. The correct answer highlights that these tools often include incentives and penalties, which are designed to influence behavior within the community or among organizations. Incentives can be both financial, such as tax breaks or subsidies, and non-financial, such as recognition programs that encourage positive actions. Penalties may involve fines or legal repercussions aimed at discouraging undesirable behaviors. This dual approach helps create a balanced framework where positive actions are rewarded, and negative ones are deterred, making it an effective strategy for implementing public policy. The other options are too limited in scope. Increasing taxes alone would not cover the diverse methods used in public policy. Similarly, public funding and legal enforcement are important aspects, but they do not encompass the full range of tools available. Public policy is best understood as a combination of various strategies, including both incentives to encourage certain behaviors and penalties to prevent others.