Which of the Following Is a Fundamental Assumption of Capture

question 1

Multiple Choice

Which of the following is a fundamental assumption of Capture Theory?

• A) People rationally advance their own self interest
• B) Economic markets are fragile
• C) Regulation is costly
• D) The is an efficient market

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Definitions:

Revocation

The action of withdrawing, cancelling, or annulling something previously granted, such as a right, license, or contract.

Captured Agency

A situation where a regulatory agency is dominated by the interests of the industry it is supposed to regulate.

Agency Officials

Individuals who hold positions of authority within governmental or organizational bodies, responsible for implementing policies and making decisions.

Unduly Influenced

Pertains to decision-making that is excessively controlled or affected by another, often in a manner that questions the fairness or voluntariness of the decision.