What are four criticisms of social regulation?
What will be an ideal response?
The criticisms of social regulation are several. First, the goals of the regulation may be uneconomical (the marginal benefits are less than the marginal costs) and often do not take into account solving the problem in the most economically efficient way. Second, the regulatory goals may be set on the basis of inadequate information. Third, there can be unintended side effects from social regulation. For example, stricter environmental laws may reduce jobs in certain industries and hurt regional economies. Fourth, the regulatory personnel have chosen to work for regulatory bodies because they feel strongly about an issue or the need for a business reform. This situation can make regulatory personnel overzealous.
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The proposed takeover of Tony's Airlines by Plummet Airlines will result in increased profits for Plummet and increased air fares for consumers. This is an example of
a. widespread distribution of benefits and costs b. concentrated distribution of costs and benefits c. concentrated distribution of benefits and widespread distribution of costs d. concentrated distribution of costs and widespread distribution of benefits e. logrolling
In 2008, federal, state, and local redistribution programs were most close to
a. $20.0 trillion b. $200.0 billion c. $2.0 billion d. $200.0 trillion e. $2.0 trillion