Regulatory Capture Involves Situations in Which

question 93

Multiple Choice

Regulatory capture involves situations in which:

• A) legislators take away bureaucratic discretion through more specific laws.
• B) bureaucrats make decisions without reference to interest groups, elected officials, or even their own policy views.
• C) a bureaucracy is responsive to the interests of the group or corporation that it is supposed to regulate.
• D) bureaucrats act independently of the influence of either legislators or the president.
• E) a political party staffs a bureaucracy entirely with its supporters.

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Definitions:

Ceiling Price

It is a legally imposed maximum price on a good or service, intended to prevent prices from rising above a certain level.

Demand Price

The maximum price at which a consumer is willing to buy a specific quantity of a good.

Binding Quota

A limit on the quantity of goods that can be imported or exported over a period, which cannot be exceeded.

Japanese-Made Cars

Vehicles manufactured by automotive companies based in Japan, known for their reliability and technology.