Which of the following would best explain why regulatory capture is a problem?
A. The regulations implemented tend to reduce the profitability of the regulated industry and
reduce global competitiveness.
B. Regulatory capture unduly increases the size and power of government, increasing costs
for taxpayers.
C. Individuals implementing the regulations lack expertise about the industry and therefore
make poor regulatory choices.
D. The regulations implemented serve the private interests of the regulated industry, rather
than addressing social interests such as consumer safety and environmental protection.
Answer: D
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Answer the following statement true (T) or false (F)
In the above figure, using the slope across an arc, the slope of the curve between points a and b is
A) 1/2. B) -1/2. C) 2. D) -2.
Unlike the segmented markets theory, the expectations theory attributes the slope of the yield curve to
A) tax considerations. B) the fact that short-term bonds are not perfect substitutes for long-term bonds. C) the market's view of future short-term interest rates. D) the variance in the inflation rates over the business cycle.
The GDP does not include
a. final goods. b. services. c. intermediate goods. d. taxes.