The Capture Theory of Regulation Indicates That a Regulatory Agency

question 23

Multiple Choice

The capture theory of regulation indicates that a regulatory agency:

• A) often serves the regulated firms rather than their customers.
• B) encourages other regulatory agencies to deregulate their industries.
• C) seeks to find market solutions that are economically efficient.
• D) extends its regulatory powers over industries it was not intended to regulate.

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Definitions:

F.o.b. Shipment

A shipping term indicating that the seller is responsible for the goods until they are loaded on a vehicle for transport, at which point responsibility shifts to the buyer.

Title

A legal term that represents ownership rights to property.

Specific Performance

A legal remedy in contracts law requiring a party to perform their part of the contract, as opposed to paying damages for failing to do so.