When a Regulator Is Concerned About Pleasing Different Groups in Order

question 7

Multiple Choice

When a regulator is concerned about pleasing different groups in order to keep employed, this is known as the

• A) share-the-gains, share-the-pains theory.
• B) regulatory hypothesis.
• C) capture hypothesis.
• D) creative theory.

---

Definitions:

Royalties

A payment made to a patent owner, author, or composer for each sale or use of their work.

Tax Proration

The division of property taxes, insurance premiums, or other charges in proportion to time or use.

Annual Tax Bill

The total amount of taxes levied annually by various governmental entities, including federal, state, and local taxes.

Tax Rate

The rate at which a person or business is taxed by the government.