The hypothesis that regulators eventually are controlled by the regulated firms and their special interests is the
A. share-the-gains, share-the-pains hypothesis.
B. control-group hypothesis.
C. public interest theory.
D. capture hypothesis.
Answer: D
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Refer to the scenario above. Which country is likely to have the highest rate of poverty?
A) Techland B) Ritzland C) Neoland D) Eduland
Rumors of a bank failing, even if not true, can become a self-fulfilling prophecy because:
A. depositors will rush to the bank to withdraw their deposits and the bank under normal situations would not have sufficient liquid assets on hand. B. regulators will scrutinize the bank heavily looking for something wrong. C. customers will not want to obtain loans from this bank. D. equity investors will not be able to sell the bank's stock.
The standard of living in a nation depends on
A. how well the economy functions within that country. B. whether or not its currency is adopted as the world's monetary standard. C. how well its economy functions relative to other countries. D. the size of the country, with larger nations always doing better than smaller ones.
Use the information provided in Table 7.2 below to answer the question(s) that follow.
Table 7.2Inputs Required to Produce a Product Using Alternative Technologies
Refer to Table 7.2. Which technology is the least capital intensive?
A. A B. B C. C D. D