The Capture Theory of Regulation Implicitly Holds That

question 68

Multiple Choice

The capture theory of regulation implicitly holds that

• A)the members of a regulated industry have a stronger incentive to attend regulatory meetings than taxpayers and consumers.
• B)regulators will always do what they think is in the public's best interest.
• C)regulatory lag is often longer than most people think.
• D)people who have worked in an industry are unlikely to become regulators in that industry.

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Definitions:

Discretion

The power or right to make decisions based on one's own judgment rather than following a strict rule or protocol.

Rules Of Agency

Guidelines governing the relationship between a principal and an agent, where the agent acts on behalf of the principal.

Officers

Officers are individuals charged with the management and operational duties within an organization, often holding specific titles and responsibilities.

Corporate Articles

Legal documents filed with a governmental body to formally establish the existence of a corporation under the law.