"Under the social interest theory of regulation, regulators attempt to maximize profits for the owners of the firms being regulated." Is the previous statement correct or incorrect? Explain your answer

What will be an ideal response?

The statement is incorrect. The social interest theory is the theory that regulators seek an efficient use of resources. The capture theory of regulation is the theory that regulators attempt to maximize the producers' economic profit.

Economics

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In the circular flow model, resources flow from the households to the firms

Indicate whether the statement is true or false

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Innovation is the application of new technology to a production process

Indicate whether the statement is true or false

Economics