Which of the Following Would Best Explain Why Regulatory Capture

question 254

Multiple Choice

Which of the following would best explain why regulatory capture is a problem?

• A)The regulations implemented tend to reduce the profitability of the regulated industry and reduce global competitiveness.
• B)Regulatory capture unduly increases the size and power of government, increasing costs for taxpayers.
• C)Individuals implementing the regulations lack expertise about the industry and therefore make poor regulatory choices.
• D)The regulations implemented serve the private interests of the regulated industry, rather than addressing social interests such as consumer safety and environmental protection.

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Definitions:

Centration

In developmental psychology, the tendency of children in the preoperational stage to focus on one aspect of a situation while neglecting others.

Problem

A situation, question, or item that presents difficulty or requires a solution.

Important Aspects

Critical or significant parts, features, or elements of a particular subject or area of study.

Sensorimotor Stage

The first of Jean Piaget's stages of cognitive development, where infants from 0 to 2 years understand the world through their actions and sensory experiences.