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

question 203

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:

Industry-Wide Bargaining

The process of collective negotiations conducted between labor unions and employers across an entire industry, rather than with a single employer.

Collective Bargaining

The process of negotiation between employers and a group of employees aimed at reaching agreements to regulate working conditions.

Codetermination

A practice where workers have a role in the management of companies, often through representation on corporate boards.

Social Partnership

A form of governance in which employers, unions, and sometimes government agencies collaborate to make major economic and labor decisions.