Regulatory Capture Is Said to Have Occurred When Which of the Following

question 203

Multiple Choice

Regulatory capture is said to have occurred when which of the following is true?

• A)Rules and enforcement in an industry are heavily influenced by the industry being regulated.
• B)One firm controls an entire market, having captured customers away from other firms.
• C)Government imposes excessive regulations in an industry, resulting in inefficiencies.
• D)Consumers make all the rules for an industry, forcing firms into inefficient production methods.

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Definitions:

Natural Selection

The process by which biological traits become either more or less common in a population due to the effect on the survival and reproduction of individuals.

Divine Creator

A supreme being believed to be responsible for the creation of the universe and life within it.

Argument From Design

The Argument from Design is a philosophical argument for the existence of God, suggesting that the universe's complexity and order imply a designer.

William Paley

An English clergyman and philosopher known for his argument of the teleological design, specifically the watchmaker analogy.