According to Economist George Stigler,the Process of Regulating Firms with Market

question 79

Multiple Choice

According to economist George Stigler,the process of regulating firms with market power becomes suspect over time because

• A)regulators impose additional costs on regulated firms because they are expected to accomplish other social goals.
• B)regulators shift from protecting the consumer to protecting the regulated firm from competition.
• C)regulated firms are allowed to expand into other markets and drive out competing firms.
• D)regulated firms devise methods to circumvent the regulations.
• E)regulation leads to corruption of political parties.

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Definitions:

Dividend Income

Income received from owning shares in a company, which is often taxable at different rates than regular income.

Distribution

The action of sharing something out among a number of recipients, often used in the context of financial assets or dividends.

Transferors Own 80%

A situation in a business transaction where the original owners or transferors retain an 80% ownership interest in the property or entity after the transaction is completed.

Tax-Free

Earnings, income, or transactions that are not subject to tax by the government.