What is regulatory capture? Name an industry in which regulatory capture is present
Please provide the best answer for the statement.
Regulatory capture occurs when those involved in creating and enforcing the regulation of an industry are heavily influenced by the industry. Professionals who create the laws and regulations governing the industry have often worked in industry previously. Many of the regulations then end up favoring the interest of the regulated businesses. Some examples include: the railroad industry (Interstate Commerce Commission), pharmaceutical industry (Food and Drug Administration), Wall Street firms (Securities Exchange Commission), and federal leasing of land for oil drilling, mining and forestry (Bureau of Land Management).
You might also like to view...
Assuming all else equal, any change that causes a decrease in the credit supply at a given real interest rate will cause:
A) the credit supply curve to shift to the right. B) an upward movement along the credit supply curve. C) a downward movement along the credit supply curve. D) the credit supply curve to shift to the left.
Producer surplus is the difference between the highest price someone is willing to pay and the price he actually pays
Indicate whether the statement is true or false
Suppose the city of Des Moines has a high credit rating, and so when Des Moines borrows funds by selling bonds,
a. the city's high credit rating and the tax status of municipal bonds both contribute to a lower interest rate than would otherwise apply. b. the city's high credit rating and the tax status of municipal bonds both contribute to a higher interest rate than would otherwise apply. c. the city's high credit rating contributes to a lower interest rate than would otherwise apply, while the tax status of municipal bonds contributes to a higher interest rate than would otherwise apply. d. the city's high credit rating contributes to a higher interest rate than would otherwise apply, while the tax status of municipal bonds contributes to a lower interest rate than would otherwise apply.
A rise in national production and national income unambiguously leads to less pollution.
Answer the following statement true (T) or false (F)