Which of the following refers to the capture hypothesis of regulation?
A) the ability of the government to capture monopoly profits
B) the control of regulatory agencies by firms in an industry
C) consumer cost savings captured through regulation
D) horizontal mergers
Answer: B
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A bond is
A. a claim on the assets of the corporation that gives the purchaser an ownership right in the corporation. B. the share of profits distributed to bondholders. C. a promise to pay for the use of someone else's money. D. a promise of ownership of the government. E. c and d
In the principal-agent problem, the principal is:
A. a person who is the source of the problem. B. a person who carries out a task on someone else's behalf. C. a person who entrusts someone with performing a task. D. a person who is in charge of an educational system.
According to data on GDP growth between 1980 and 2009, which of the following statements is true?
What will be an ideal response?
A special-interest issue is one whose passage yields:
A. private benefits equal to external benefits. B. large external benefits compared to private benefits. C. small economic losses to a small number of people and large economic losses to a large number of people. D. large economic gains to a small number of people and small economic losses to a large number of people.