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:

Referent

The object or thing that a word or phrase denotes or stands for.

This Glass of Pepsi

A specific instance of a beverage, served in a glass, that is being referred to in the context.

Beverage

A liquid intended for human consumption to fulfill thirst and sometimes to provide nutrition or pleasure.

Concept

An abstract idea or a mental symbol used to understand or categorize things by grouping them based on common characteristics.