Which of the Following Best Describes the Capture Theory of Regulation

question 210

Multiple Choice

Which of the following best describes the capture theory of regulation?
i.Regulation seeks an efficient use of resources.
ii.Regulation is aimed at keeping prices as low as possible.
iii.Regulation helps firms maximize economic profit.

• A) i only
• B) ii only
• C) iii only
• D) i and ii
• E) i, ii, and iii

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Definitions:

Distribution Of Income

How a nation’s total earnings are spread among its population, impacting wealth inequality.

Wealth

Anything that has value because it produces income or could produce income.

Smokestack Industries

Sectors typically characterized by heavy manufacturing and industrial activity, often associated with high levels of pollution and traditionally rooted in the manufacturing era.

Exodus

The mass departure of people, often from a country or region, due to various reasons such as war, disaster, or persecution.