Economists Who Think the Capture Theory Explains Regulatory Behavior Will

question 170

Multiple Choice

Economists who think the capture theory explains regulatory behavior will support their claims by noting that

• A) regulation as carried out in this country generates larger profits for the firms and does not generate lower prices for consumers.
• B) consumers actually dominate regulatory hearings through the influence of consumer advocacy groups.
• C) Congress ensured that consumers have more influence on the decisions of regulators by setting up the agencies in ways that insulated the regulators from the regulated firms.
• D) the firms that are regulated have greater incentive to try to influence regulators than do consumers.

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Definitions:

Performance Measures

Metrics or indicators used to assess the efficiency, effectiveness, and quality of operations and services within an organization.

Inventory Assignment

The process of allocating or designating specific quantities of inventory to particular orders, locations, or purposes.

Bullwhip Effect

A phenomenon in supply chain management where small fluctuations in demand at the retail level cause progressively larger fluctuations in demand upstream.

Supply Chain Relationships

The interactions and connections between various entities involved in the production and distribution of goods, from suppliers to customers.