Author Question: Which of the following statements provides the best description of one reason why regulation of an ... (Read 80 times)

piesebel · **on:** Jul 1, 2018

Which of the following statements provides the best description of one reason why regulation of an industry might not increase economic efficiency?

a. There are more employees of regulated industries than affected customers.
b. Insufficient regulator pay makes it difficult to hire effective regulators.
c. The regulated industry has stronger incentives to be involved in the regulation process than the general publi
c.
d. Regulated industries have too much economic power and can litigate away most regulation.

Question 2

Normative economic analysis _____.

a. is concerned only with the facts
b. is a statement about the relationship between a policy change an outcome
c. judges the desirability of a policy change
d. does not involve value judgments