Which of the Following Would Best Explain Why Regulatory Capture

question 254

Multiple Choice

Which of the following would best explain why regulatory capture is a problem?

• A)The regulations implemented tend to reduce the profitability of the regulated industry and reduce global competitiveness.
• B)Regulatory capture unduly increases the size and power of government, increasing costs for taxpayers.
• C)Individuals implementing the regulations lack expertise about the industry and therefore make poor regulatory choices.
• D)The regulations implemented serve the private interests of the regulated industry, rather than addressing social interests such as consumer safety and environmental protection.

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Definitions:

Projective Tests

Psychological assessments where subjects respond to ambiguous stimuli, revealing hidden emotions and internal conflicts based on their projections.

Objective Tests

Tests that measure an individual's performance against a standard set of criteria or answers, minimizing subjective judgment.

Double-blind Tests

Experimental procedures in which neither the participants nor the experimenters know who is receiving a particular treatment, to prevent bias.

Single-blind Tests

Experimental designs in which the participants do not know which treatment or intervention they are receiving, but the experimenters do.