A Lesson of the Enron Collapse Is That Government Regulation

question 84

Multiple Choice

A lesson of the Enron collapse is that government regulation

• A) always fails.
• B) can reduce but not eliminate asymmetric information.
• C) increases the problem of asymmetric information.
• D) should be reduced.

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Definitions:

Light Bulb

An electric device that produces light from electricity, typically consisting of a filament that glows when heated.

Low-Throughput Economy

An economic system focused on minimizing resource use and waste production.

Barrel of Oil

A unit of measure for crude oil and other petroleum products, equivalent to 42 US gallons.

Environmental Surprise

Unanticipated or unforeseen events or changes in the environment that can drastically impact ecosystems and human societies.