What Is Regulatory Capture

question 170

Multiple Choice

What is regulatory capture?

• A)It is a situation in which a policymaker seeks to improve his election prospects by aligning himself with a powerful special interest group which will finance his political campaign.
• B)It is the exchange of political support between a regulatory agency and the regulated firm resulting in both parties capturing economic rents.
• C)It is a situation in which a firm being regulated successfully influences the regulatory agency's actions to benefit the interests of the firm, rather than the public interest.
• D)It is a situation in which a regulatory agency uses its authority to force actions that are not favored by the regulated firms but are in the public's interest.

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Definitions:

One-way ANOVA

A statistical test that compares the means of three or more independent groups to determine if there is a significant difference among them.

Dependent Variable

In an experiment, it is the variable that is being tested and measured, expected to change as a result of modifications to the independent variable.

Television Viewing

The act of watching content on a television set or through television channels.

Squares Total

The sum of squared differences between each observation and the overall mean of the data set. It is a measure of total variation within a data set.