Economists Who Think the Capture Theory Explains Regulatory Behavior Will

question 170

Multiple Choice

Economists who think the capture theory explains regulatory behavior will support their claims by noting that

• A) regulation as carried out in this country generates larger profits for the firms and does not generate lower prices for consumers.
• B) consumers actually dominate regulatory hearings through the influence of consumer advocacy groups.
• C) Congress ensured that consumers have more influence on the decisions of regulators by setting up the agencies in ways that insulated the regulators from the regulated firms.
• D) the firms that are regulated have greater incentive to try to influence regulators than do consumers.

---

Definitions:

Long-Term Memory

The phase of the memory system capable of storing information for prolonged periods, often throughout a person's life.

Unlimited Capacity

A hypothetical concept suggesting that there's no upper limit to the amount of information the human brain can store.

Decades

Periods of ten years, often used to mark significant time intervals in history, research, and life events.

Episodic Memory

The type of long-term memory that involves the recollection of specific events, situations, and experiences, including the context and emotions associated with them.