Deregulation Can Solve the Problem of Regulatory Capture and Increase

question 125

Multiple Choice

Deregulation can solve the problem of regulatory capture and increase economic efficiency

• A) if the deregulated industry quickly evolves into a monopoly.
• B) if the deregulated industry becomes more competitive.
• C) when the regulations covering the industry are tightened.
• D) when the industry ends up generating substantial external costs.

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Definitions:

Conflict

A confrontation or struggle between opposing parties, arising from differences in opinions, interests, or values.

Well-Being

The state of being comfortable, healthy, or happy, encompassing both physical and psychological health.

Retirees

Individuals who have withdrawn from active working life, often due to age, and are typically supported by pensions, savings, or benefits.

Physical Aspects

The tangible, measurable characteristics or properties of objects or systems.