What is meant by “the paradox of regulation”?
What will be an ideal response?
ANSWER:
Arguments favoring regulation are that intervention in the form of mandatory reporting requirements is necessary to ensure that the real demand for accounting information is met and to provide the best standards from the societal point of view. However, economists have concluded that it is impossible to derive regulatory policies that will knowingly maximize the social welfare. Once the free market pricing system is abandoned, there is no way of determining aggregate social preferences. If the pricing system is working, aggregate social preferences are revealed through supply-demand equilibrium, and resources are allocated according to market prices. There is no comparable rule in a regulated market, so it is impossible to know if accounting regulation is producing the optimal quantity and quality of financial reporting.
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An alternative hypothesis is a statement of the status quo, one of no difference or no effect
Indicate whether the statement is true or false
A company has fixed costs of $90,000. Its contribution margin ratio is 30% and the product sells for $75 per unit. What is the company's break-even point in dollar sales?
A. $180,000. B. $210,000. C. $128,571. D. $300,000. E. $60,000.
Examples of state limited-jurisdiction trial courts include:
A) Traffic courts. B) Juvenile courts. C) Family-law courts. D) All of the above
Name the five Ps of production(1) ________(2) ________(3) ________(4) ________(5) ________
What will be an ideal response?