A Lesson of the Enron Collapse Is That Government Regulation

question 84

Multiple Choice

A lesson of the Enron collapse is that government regulation

• A) always fails.
• B) can reduce but not eliminate asymmetric information.
• C) increases the problem of asymmetric information.
• D) should be reduced.

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Definitions:

Edward Gorsuch

A Maryland slave owner known for his death during the Christiana Riot of 1851, an event that intensified the pre-Civil War conflict between slave states and free states.

Christiana Riot

An armed resistance that occurred in 1851 in Pennsylvania, where African American slaves and free blacks fought against a federal attempt to capture fugitives under the Fugitive Slave Act, symbolizing resistance against slavery.

Fugitive Slaves

Individuals who escaped from slavery to seek freedom from their enslavers, particularly in the United States before the abolition of slavery.

James McCune Smith

The first African American to earn a medical degree, achieving this distinction in 1837, and a prominent abolitionist and intellectual of the 19th century.