Regarding the Costs of Regulation, Which Is a FALSE Statement

question 131

Multiple Choice

Regarding the costs of regulation, which is a FALSE statement?

• A) Airline safety standards have increased the price of air travel.
• B) Automobile safety standards raise the price of cars.
• C) Regulatory spending by federal agencies has decreased since 1970.
• D) Pharmaceutical manufacturing safety standards raise the price of drugs.

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Definitions:

Net Income

The total profit of a company after all revenues, gains, expenses, and losses have been accounted for, typically within a specific period of time.

Working Capital Method

A financial metric used to evaluate a company's operational efficiency, calculated as current assets minus current liabilities.

Cash Flows

The total amount of money being transferred into and out of a business, especially considered in terms of liquidity.

Indirect Method

A technique for creating a statement of cash flows where net income is adjusted for non-cash transactions and changes in working capital.