The Capture Theory of Regulation Predicts That Regulations Bring ________

question 42

Multiple Choice

The capture theory of regulation predicts that regulations bring ________ to producers and impose ________ on any individual consumer.

• A) small benefits; small costs
• B) small benefits; large costs
• C) large benefits; small costs
• D) large benefits; large costs
• E) large benefits; no costs

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Definitions:

Audited Company

An audited company is one that has undergone a formal examination of its financial accounts and statements by an independent auditor.

GAAP And GAAS

GAAP (Generally Accepted Accounting Principles) are a set of accounting standards used in the U.S., while GAAS (Generally Accepted Auditing Standards) are guidelines for auditors in executing audit engagements.

Prima Facie Evidence

Evidence that, on its face, is sufficient to prove a particular proposition or fact unless refuted by contrary evidence.

Negligence

A failure to exercise the care that a reasonably prudent person would exercise in similar circumstances, leading to harm or damage.