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Homework answers / question archive / Which of the following best exemplifies regulatory capture, or the capture theory of regulation? a

Which of the following best exemplifies regulatory capture, or the capture theory of regulation? a

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Which of the following best exemplifies regulatory capture, or the capture theory of regulation?

a. Banks write the laws that will be enacted in an effort to govern the financial industry.

b. A pollution tax is enacted to internalize a negative externality.

c. Both negative and positive externalities are internalized or negated.

d. Homeowners are forced to pay an additional tax in order to support a public park in their area.

e. None of the above.

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