The capture theory of regulation is that regulations
A) help producers to maximize economic profits.
B) mean producers suffer losses.
C) result in diseconomies of scale.
D) benefit society, not producers.
E) benefit the regulators, not the producers or the consumers.
A
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Which of the following statements is true?
A) The command system is remarkable at providing price signals that guide resources in a way that maximizes social surplus. B) Market economies minimize waste and provide incentives to all market participants to promote their own interests. C) Coordination of different economic agents and bringing them together to trade is a central problem of a free market economy. D) The broader interests of societies are met more often under a command system in comparison to a market system.
________ is concerned with the distribution of resources across society
A) Social surplus B) Equity C) Efficiency D) Utility