Regulatory Capture Often Occurs Because of Which of the Following

question 142

Multiple Choice

Regulatory capture often occurs because of which of the following?

• A) Government officials want stronger control over industry regulation.
• B) Nearly everyone with expertise works in the regulated industry.
• C) Patent law allows firms to gain monopoly power easily and therefore control a market.
• D) Consumer groups are effective at lobbying the government for industry regulation.

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Definitions:

Random Sampling

A technique used in research to select a subset of individuals from a larger population by chance, ensuring each member has an equal opportunity of being chosen.

Validity

The extent to which a concept, conclusion, or measurement is well-founded and likely corresponds accurately to the real world.

Egocentric Fallacy

The mistaken belief that one's own personal experience or values are universal.

Ethnocentrism

The belief in the superiority of one's own ethnic group or culture over others.