Examine regulatory capture in the railroad industry
Please provide the best answer for the statement.
In the 1887, in response to complaints that railroads were overcharging, the federal government established the Interstate Commerce Commission (ICC). The agency was in charge of regulating competition and prices. Soon railroad executives achieved regulatory capture by creating poles that fixed rates and profitable levels and reducing competition between railroads. The ICC justified these policies to the public by stating that competition had to be restricted to prevent large railroads from bankrupting the smaller ones, while the real motive was to reduce competition and increase profits.
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The Beveridge curve is
A) a positive relationship between unemployment and the inflation rate. B) a positive relationship between the government deficit and aggregate output. C) a negative relationship between the vacancy rate and the unemployment rate. D) a positive relationship between the inflation rate and the nominal interest rate.
The notion of ________ is that through income redistribution, the rich sacrifice a little and the poor gain a lot.
A. Rawlsian justice B. distributional justice C. labor value D. utilitarian justice
Refer to Table 4-4. The table above lists the highest prices three consumers, Curly, Moe, and Larry, are willing to pay for a bottle of champagne. If the price of the champagne falls from $24 to $14
A) consumer surplus will increase from $80 to $95. B) consumer surplus increases from $32 to $53. C) Larry and Moe will receive more consumer surplus than Curly. D) Curly will buy four bottles; Moe will buy two bottles, and Larry will buy one bottle.
A mixed capitalist economy is one in which
a. decisions are based primarily on religion or custom b. all resources are publicly owned and economic planning is centralized c. all resources are privately owned and prices are used to coordinate economic activity d. resources are both publicly and privately owned and some markets are regulated e. all resources are publicly owned and prices are used to coordinate economic activity