The Public Choice Theory of Regulation

question 44

Multiple Choice

The public choice theory of regulation:

• A) holds that firms may have to be regulated in order to guarantee that certain goods and services are available to consumers.
• B) is often justified by pointing to such things as pollution that are not considered by firms on their own.
• C) is used to counter market failure.
• D) holds that a regulatory agency often serves the interests of government bureaucrats over those of the public.

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Definitions:

Executor

An individual appointed to administer the estate of a deceased person in accordance with their will.

Holographic

Relates to a will or other document written entirely in the handwriting of the person whose signature it bears.

Handwriting

The individual manner in which a person writes with a pen or pencil, producing characters and symbols on a surface, often analyzed in legal documents for authentication.

Irrevocable

Not able to be changed, reversed, or recovered; final and unalterable.