Question 27 (1 point) Different approaches to the problem of negative externality may be less costly or more effectve depending on the situation. Match the situation to the appropriate policy approach. Appropriate actions are clear. Measurement of pollution is difficult 1. Private agreements (like the fence.) It is important to give polluters flexibility about 2. Command-and-control (like how to reduce pollution. catalytic converters.) Very low transaction costs 3. Pollution taxes (Pigouvean taxes.) 4. Cap and trade (Carbon emission The problem is national or credits.) global so that many firms are affected by the right to emit pollution