The transitional gains trap is a _____.
a. by-product of some types of regulation
b. associated with the move from a socialist to a market society
c. associated with the move from a communal to a socialist society
d. by-product of changing the rate at which capital gains are taxed
Question 2
The equilibrium level of regulation is _____.
a. determined where marginal political gains to the special interests are equal to the marginal political costs of the foregone regulation
b. determined where the marginal benefits from the regulation are equal to the marginal costs of the regulation
c. determined where the marginal political benefits to the special interests are equal to zero
d. determined where the marginal benefits from the regulation are equal to zero
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