Which of the Following Is Not True About the Economic

question 29

Multiple Choice

Which of the following is not true about the economic (private) interest theory of regulation?

• A) Unlike public interest theory, regulation is not considered to be a commodity that is subject to the principles of supply and demand.
• B) Regulation serves the private interests of particular parties, including politicians, who are seeking re-election.
• C) Regulation serves the private interest of politically-effective groups.
• D) Regulation tends to protect and maintain the ability of those with the power and financial wealth to afford to buy lobbying power and votes, and suppresses the ability of others without it.

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Definitions:

Habituation

A process by which an animal decreases or stops its response to a repetitive stimulus that does not bring any inherent reward or harm.

Empiricist

A person or theory that emphasizes the role of sensory experience in the formation of ideas, arguing that knowledge comes primarily from experience.

Rene Descartes

A 17th-century French philosopher, mathematician, and scientist who is considered one of the founders of modern philosophy.

George Berkeley

George Berkeley was an Irish philosopher who advanced the theory of immaterialism, arguing that material objects exist only in the mind and through perception.