Regulatory Capture in Government Happens Because the People Who Are

question 165

True/False

Regulatory capture in government happens because the people who are most qualified to supervise and regulate an industry oftentimes are or have been the leaders of the industry.

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Definitions:

Endowed

Possessing a particular resource, asset, or attribute, either naturally or through a transfer, such as being given a sum of money or property.

Bromides

Compounds containing a bromine ion or a derivative thereof; in colloquial usage, a bromide is a commonplace or boring statement intended to placate or pacify.

Platitudes

Often overused statements or remarks that are intended to convey moral or practical truths, but are perceived as lacking in originality or sincerity.

Pareto Efficient Allocation

An economic state where resources are allocated in such a way that it is impossible to make one individual better off without making at least one individual worse off.