What is regulatory capture?
A) It is a situation in which a firm being regulated successfully influences the regulatory agency's actions to benefit the interests of the firm, rather than the public interest.
B) It is a situation in which a regulatory agency uses its authority to force actions that are not favored by the regulated firms but are in the public's interest.
C) It is a situation in which a policymaker seeks to improve his election prospects by aligning himself with a powerful special interest group which will finance his political campaign.
D) It is the exchange of political support between a regulatory agency and the regulated firm resulting in both parties capturing economic rents.
A
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Ball's research showed that the sacrifice ratio
A) was the same for all countries. B) was nearly zero for most countries. C) was about 10 for all countries except the United States, where it was about 2. D) varied considerably across countries.
Which of the following is true? i) A rational choice is made on the margin. ii) Microeconomics is the study of the national economy while macroeconomics is the study of the global economy. iii) Economists try to understand how the economic world works by testing normative statements.
A. Only ii B. i and ii C. Only iii D. i and iii E. Only i