The Capture Theory of Regulation Holds That Government Regulations Often

question 103

True/False

The capture theory of regulation holds that government regulations often end up serving the interests of regulated firms.

---

Definitions:

Ability-To-Pay Principle

This principle suggests that individuals should be taxed based on their ability to pay, regardless of the benefits they receive.

Equity Principle

A concept in finance that emphasizes fair distribution of wealth and assets, ensuring that financial transactions are conducted fairly and equitably.

Taxes

Mandatory financial charges or levies imposed by a government on individuals or businesses to fund public expenditure.

Proportional Tax

A tax system where the tax rate remains constant regardless of the amount subject to taxation, meaning all taxpayers pay the same percentage of their income.