Which One of the Following Statements Best Describes the Outcome

question 52

Multiple Choice

Which one of the following statements best describes the outcome of regulatory capture?

• A) Congress maintains more control over the implementation of policies.
• B) The president maintains more control over the implementation of policies.
• C) Lobbyists and interest groups are blocked from having any control over the implementation of policies.
• D) A small group of individuals or corporations can have tremendous influence over the implementation of policies.

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Definitions:

Economic Profit

The difference between the total revenue generated by a business and the total costs, including both explicit and implicit costs.

Maintenance

The process of preserving or keeping equipment, machinery, buildings, etc., in working order by conducting regular check-ups and repairs.

Income Effect

How an alteration in income for either a person or an economic system influences the demand levels for a certain good or service.

Price Ceiling

A legally imposed maximum price on goods or services, beyond which they cannot be sold.