Regulatory Capture Is Said to Have Occurred When Which of the Following

question 105

Multiple Choice

Regulatory capture is said to have occurred when which of the following is true?

• A) Rules and enforcement in an industry are heavily influenced by the industry being regulated.
• B) One firm controls an entire market, having captured customers away from other firms.
• C) Government imposes excessive regulations in an industry, resulting in inefficiencies.
• D) Consumers make all the rules for an industry, forcing firms into inefficient production methods.

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Definitions:

Doctrine of Nullification

A political theory asserting that states have the right to nullify or invalidate any federal law deemed unconstitutional or infringing on states' rights, central to pre-Civil War sectional conflicts.

State Sovereignty

The principle that states have the authority to govern themselves, make their own laws, and manage internal affairs without external interference.

President Jackson

Andrew Jackson, the seventh President of the United States, known for his populist policies and for founding the Democratic Party.

Federal Legislation

Laws enacted by the national government of a federal country, such as the United States, that apply to all states and citizens within that country.