The Public Interest Theory of Regulation

question 199

Multiple Choice

The public interest theory of regulation

• A) says that industries should be regulated to insure quality service at reasonable prices.
• B) says higher costs may not be passed through to consumers.
• C) protects industries from new competition.
• D) guarantees higher rates for natural monopolies.

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Definitions:

Federal Statute

Laws enacted by the national government that apply throughout the country.

Land Titles System

A registration system that guarantees title to real property.

State of Title Certificate

A document issued by a governmental land registration office showing the current status of legal ownership, and any encumbrances, liens, or mortgages on a piece of property.

Federal Government

The national government of a federated state, which shares sovereignty with its states or provinces.