"The theory that regulation seeks an efficient use of resources is called the capture theory of regulation." Is the previous statement correct or incorrect? Explain your answer

What will be an ideal response?

The statement is incorrect. The capture theory is the theory that the regulated producers "capture" the regulators and so the regulators help the producers maximize their economic profit. The theory that regulation seeks an efficient use of resources is the "social interest" theory.

Economics

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When the government raises revenue by printing money, it imposes an "inflation tax" because the:

A. real value of money holdings falls. B. interest rate falls. C. difference between nominal and real interest rates becomes smaller. D. nominal value of money holdings falls.

Economics

Refer to Figure 15-4. What is the profit-maximizing/loss-minimizing output level?

A) 600 units B) 800 units C) 940 units D) 1,160 units

Economics