Samuel Peltzman Had a Different View to George Stigler on the Impact

question 52

Multiple Choice

Samuel Peltzman had a different view to George Stigler on the impact of regulation on banks.He contends that:

• A)firms in regulated industries actually seek out regulations because they bring monopolistic rents.
• B)regulations shelter firms from changes in demand and cost,lowering its risk.
• C)regulations can increase consumer confidence which increases customer loyalty to regulated firms.
• D)depository institutions should be regulated no differently than any other corporation with no subsidies or special privileges.
• E)None of the options are correct.

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Definitions:

Antipsychotic Drugs

Medications used to treat psychotic disorders, helping to manage symptoms such as delusions and hallucinations.

Neuroleptics

A class of medication typically used to treat psychiatric disorders, such as schizophrenia, by targeting brain chemicals related to mood and behavior.

Beck's Cognitive Approach

A therapeutic strategy developed by Aaron Beck that addresses dysfunctional emotions and behaviors by correcting faulty thinking patterns.

Argues Openly

To engage in a discussion or debate in a manner that is not hidden or secret, often implying a forthright and public expression of differing views.