Regarding the Costs of Regulation, Which Is a FALSE Statement

question 131

Multiple Choice

Regarding the costs of regulation, which is a FALSE statement?

• A) Airline safety standards have increased the price of air travel.
• B) Automobile safety standards raise the price of cars.
• C) Regulatory spending by federal agencies has decreased since 1970.
• D) Pharmaceutical manufacturing safety standards raise the price of drugs.

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Definitions:

Capital Gains Yield

The rate of price appreciation on an investment or security, excluding dividends or interest.

Stock Price

The current market price at which a share of a company's stock can be bought or sold.

Efficient Market Hypothesis

A theory in financial economics that states that asset prices fully reflect all available information, making it impossible to consistently achieve higher returns than the market average.

Fundamental Analysis

A method of evaluating securities by attempting to measure the intrinsic value of a stock through examination of related economic, financial, and other qualitative and quantitative factors.