The Social Interest Theory of Regulation Is That

question 27

Multiple Choice

The social interest theory of regulation is that

• A) regulators help producers maximize economic profit.
• B) regulation seeks to increase the government's revenue.
• C) regulation causes producers to produce at a point where they are earning normal profits.
• D) regulation seeks an efficient use of resources.
• E) regulation focuses on the consumers' interests and ignores producers' interests.

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Definitions:

Multiplier

In economics, it refers to the factor by which gains in total output are greater than the change in spending that caused it.

GDP

The total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period.

Spending Changes

Alterations in the amount of money that consumers, businesses, and governments expend on goods and services.

Expansionary Fiscal Policy

A government policy aimed at increasing government spending and/or cutting taxes to stimulate the economy and increase demand.