The Public Choice Theory of Regulation

question 44

Multiple Choice

The public choice theory of regulation:

• A) holds that firms may have to be regulated in order to guarantee that certain goods and services are available to consumers.
• B) is often justified by pointing to such things as pollution that are not considered by firms on their own.
• C) is used to counter market failure.
• D) holds that a regulatory agency often serves the interests of government bureaucrats over those of the public.

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Definitions:

National Republicans

A political party in the United States, active in the late 1820s and early 1830s, which supported a strong federal government and policies that promoted economic growth, evolving into the Whig Party.

Kitchen Cabinet

A term referring to a group of unofficial advisors to the head of a government.

Empresarios

Agents who were granted the right to settle on land in exchange for recruiting and taking responsibility for new settlers; used notably in the context of Mexican Texas.

Industrial Revolution

A period of major industrialization that took place during the late 1700s and early 1800s, changing economies and societies.