The Capture Theory of Regulation Is That Regulations

question 202

Multiple Choice

The capture theory of regulation is that regulations

• A) help producers to maximize economic profits.
• B) mean producers suffer losses.
• C) result in diseconomies of scale.
• D) benefit society, not producers.
• E) benefit the regulators, not the producers or the consumers.

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Definitions:

Ethical Issue

A problem or situation that requires a person or organization to choose between alternatives that must be evaluated as right or wrong.

Evaluated

The process of assessing or examining something to determine its value, quality, or significance.

Society

A large community of people living together in an organized way, making decisions about how to do things and sharing the work that needs to be done.

Integrity

The quality of being honest and having strong moral principles; moral uprightness.