Which of the Following Is True of Regulation

question 114

Multiple Choice

Which of the following is true of regulation?

• A) Regulatory agencies often ignore the secondary effects of their actions and fail to foresee future problems.
• B) Policy-makers are hesitant to call for new regulations even when it is clear they would help avert future crises.
• C) Mortgage lending and banking have historically been unregulated and therefore regulation in these sectors will be unpopular.
• D) Past regulations have been effective at averting crises, but they are unpopular because they reduce the profitability of the regulated industry.

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Definitions:

Modus Tollens

A logical argument form where the contrapositive of a premise is used to infer the negation of the hypothesis.

Hypothetical Syllogism

A logical argument composed of two conditional statements and a conclusion, based if the first premise is true, then the second one follows.

Modus Ponens

A valid form of argument in which if a conditional statement (“if p then q”) and its antecedent (“p”) are true, then the consequent (“q”) is also true.

Modus Tollens

A form of deductive argument that takes the form "If P, then Q. Not Q. Therefore, not P," which is used to derive a conclusion from a hypothesis by negation.