Regulatory Capture Exists When

question 140

Multiple Choice

Regulatory capture exists when

• A)regulated firms form special interests and influence politicians who appoint regulators through campaign donations.
• B)regulated firms pay for favorable public media campaigns.
• C)the federal government successfully deregulates an industry.
• D)two or more firms merge to gain a majority market share.

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Definitions:

Political Reforms

Changes introduced to the political system of a country or region aimed at improving governance, enhancing democracy, and addressing flaws in the existing structure.

Interest Rate

The percentage of a sum of money charged for its use, often expressed as an annual rate.

Exchange Rate

The value of one currency expressed in terms of another currency, used to determine how much of one currency can be exchanged for another.

Tax Rebate

A refund on taxes when the tax liability is less than the taxes paid.