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.