Which of the following offers the best example of the special interest theory of regulation?
a. The deregulation of the trucking industry.
b. Consumer groups lobbying the Federal Energy Regulatory Commission to create a competitive market for natural gas.
c. A state public utility commission regulating a natural monopoly to best serve the public interest by maintaining low prices and sustaining the firm at zero economic profit.
d. The Civil Aeronautics Board (CAB) protecting existing airlines from competition by rejecting every single application for new entry into interstate airline markets over the life of the CAB.
d
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Consider the following economic agents:
a. the government b. consumers c. producers Who, in a modern mixed economy, decides what goods and services will be produced with the scarce resources available in that economy? A) producers B) consumers C) the government, consumers, and producers D) the government E) consumers and producers
A reduction in the marginal tax rate can cause potential output to increase by:
A) encouraging early entry into the labor market by reducing the incentive to earn advanced degrees. B) increasing after-tax wage rates and thus allowing workers to work fewer hours. C) increasing the incentive to invest more in education and earn advanced degrees. D) increasing government revenues and thus government expenditure.
Most games in real life:
A. require intuition, common sense, and calculations. B. require a rollback strategy. C. have a best solution. D. require a mixed strategy.
When referring to "marginal" changes, the economic focus is on:
A. changes which affect only a few people or products. B. large changes on the low end. C. graduated changes on the high end. D. small or incremental changes.