According to Economist George Stigler,the Process of Regulating Firms with Market

question 79

Multiple Choice

According to economist George Stigler,the process of regulating firms with market power becomes suspect over time because

• A)regulators impose additional costs on regulated firms because they are expected to accomplish other social goals.
• B)regulators shift from protecting the consumer to protecting the regulated firm from competition.
• C)regulated firms are allowed to expand into other markets and drive out competing firms.
• D)regulated firms devise methods to circumvent the regulations.
• E)regulation leads to corruption of political parties.

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Definitions:

Globalization

Globalization is the process of increased interconnectedness and interdependence of the world's economies, cultures, and populations, facilitated by trade, investment, and information technology.

International Job Mobility

The ability of workers to move across national borders to find employment, often influenced by global economic conditions and immigration policies.

Government Regulations

The laws and rules established by governments to control or direct the behavior of businesses, individuals, and other entities.

Formal Labor Relations

Refers to structured and legally governed interactions between employers, employees, and their representatives.