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.

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Definitions:

Specification Limits

Defined upper and lower bounds within which a product or process measurement should fall to meet quality standards.

Confidence Level

A statistical measure that quantifies the probability of a parameter lying within a specified range of values, often used in the context of confidence intervals.