Which of the Following Is Not an Argument for Regulation

question 4

Multiple Choice

Which of the following is not an argument for regulation of accounting information by pro-regulation proponents?

• A) Regulation is needed because it is difficult to make 'free riders' pay for its production
• B) Regulation is needed to prevent wasteful over-supply, because users will overstate their need for information if they do not have to pay for it
• C) Regulation is needed to correct market failure and under-supply due to the reluctance of producers of information to charge 'free riders' for it
• D) Regulation is needed because the price system cannot function properly if it is not possible to exclude non-purchasers from consuming the good

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Definitions:

Null Hypothesis

A statement that asserts that there is no effect or no difference, and it serves as the starting point for statistical testing.

P-value

It quantifies the likelihood of observing the collected data if the null hypothesis were true, used in hypothesis testing as a critical component.

Null Hypothesis

A hypothesis that assumes no significant difference or effect, serving as the default assumption in statistical hypothesis testing.

Alternative Hypothesis

A hypothesis that contradicts the null hypothesis; it suggests there is an actual effect or difference.