Capture Theory Is

question 115

Multiple Choice

Capture theory is

• A) an economic theory of regulation.
• B) a model about perfect competition.
• C) the same as the public interest theory.
• D) the theory that regulators capture firms' attention by dictating a very low price.
• E) a theory that explains behavior of competitive firms.

---

Definitions:

Leisure

The time available for purposes other than earning money to buy marketed goods.

Nonmarket Use

Utilization or value derived from a good or service outside of commercial or financial transactions, typically involving public or shared resources.

Labor Supply

The total hours that workers are willing and able to work at a given wage rate, across different jobs and industries.

Substitution Effect

The change in quantity demanded of a good due to a change in its price, leading consumers to switch to or from substitute products.