The Interstate Commerce Commission (ICC) Regulates Railroads, Barges and Trucks

question 235

Multiple Choice

The Interstate Commerce Commission (ICC) regulates railroads, barges and trucks. Suppose technical change lowers the costs of railroads. As a result, the ICC permits railroads to lower prices some but also alters the rates of barges and trucks so they get additional business. The ICC would be acting consistently with

• A) the capture theory of regulation.
• B) the public interest theory of regulation.
• C) the share-the-gains, share-the-pains theory of regulation.
• D) None of the theories presented in the text since economic regulation is specific to a single industry and not to agencies that cover more than one industry. That is the province of social regulation.

---

Definitions:

Diet Soft-drinks

Beverages that are artificially sweetened to offer the taste of their sugar-containing counterparts while providing fewer calories, often promoted as a healthier alternative.

DSM-5 Criterion

Criteria outlined in the Diagnostic and Statistical Manual of Mental Disorders, Fifth Edition, that healthcare providers use to diagnose psychological disorders.

Fad Diets

Diet plans that become popular quickly and often promise rapid weight loss or other health benefits, but lack scientific support and sustainability.

Binge Eating Disorder

An eating disorder characterized by recurrent episodes of eating large quantities of food, often quickly and to the point of discomfort, while feeling a loss of control over the eating.