According to the capture hypothesis, it appears that regulators eventually end up
A) adopting policies that benefit the firms being regulated.
B) adopting policies that benefit consumers at the expense of the regulated firms.
C) adopting policies that benefit no one.
D) satisfying neither producers nor consumers, but striving to control as much as possible.
Answer: A
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"As Jake consumes more sodas over the course of a day, it is likely that his marginal rate of substitution of sodas for other goods will rise." Is the previous statement correct or incorrect?
What will be an ideal response?
In the current U.S. economy, who plays the role of lender of last resort?
A) The Securities and Exchange Commission B) The Federal Deposit Insurance Corporation C) The Federal Reserve System D) The Social Security Administration
Under monetary stabilization policy in the New Keynesian model, following a drop in output, the central bank should
A) increase the price level. B) decrease the price level. C) increase the interest rate. D) decrease the interest rate.
Which of the following statements about Nash equilibrium is true?
a. Every finite game has more than one Nash equilibrium. b. A pair of dominant strategies in a price-fixing game is always a Nash equilibrium. c. A dominance solvable game does not have a Nash equilibrium. d. Games with an infinite number of strategies have multiple Nash equilibria.