Which of the Following Arguments Supports the View That Regulation

question 12

Multiple Choice

Which of the following arguments supports the view that regulation is not necessary,particularly to the extent that it currently exists?

• A) Accounting information is like any other good, and people will be prepared to pay for it to the extent that it has a use.
• B) Markets for information are not efficient and therefore produce a sub-optimum amount of information, given the problem of 'free riders'.
• C) Investors need protection from fraudulent organisations that may produce misleading information.
• D) Information asymmetry exists because not everyone has the same power over resources to obtain the information they need.

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Definitions:

Brand Loyalty

A consumer's preference to buy a particular brand’s product over others, often reflected in repeated purchases.

Economic Efficiency

A condition in which resources are distributed to optimize the production of goods and services while minimizing costs.

Brand Loyalty

The tendency of consumers to continuously purchase one brand's products over competing ones.

Substitute Products

Goods and services that can be used in place of each other based on their utility and functional qualities.