Deregulation Can Solve the Problem of Regulatory Capture and Increase

question 139

Multiple Choice

Deregulation can solve the problem of regulatory capture and increase economic efficiency:

• A) If the deregulated industry quickly evolves into a monopoly
• B) If the deregulated industry becomes more competitive
• C) When the regulations covering the industry are tightened
• D) When the industry ends up generating substantial external costs

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Definitions:

Elaborative

Pertaining to a method or process that involves adding details or expanding on information to facilitate understanding or memory.

Maintenance

The process of preserving a condition or situation or the action of keeping something in a state of repair or efficiency.

Elaborative Rehearsal

A memory technique that involves thinking about the meaning of the term to be remembered, as opposed to simply repeating the word to oneself.

Maintenance Rehearsal

A cognitive process involving the repetitive review of information to keep it in short-term memory longer.