Laissez-Faire vs Regulation · US History

Critics of government regulation often argue that it leads to 'regulatory capture,' which occurs when:

The agency becomes an advocate for the industry it is supposed to regulate
A regulatory agency is abolished by the President
A group of consumers takes over the board of directors of a major corporation
The government uses the military to enforce safety standards

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Correct answer: The agency becomes an advocate for the industry it is supposed to regulate

Regulatory capture describes a failure where an agency, created to act in the public interest, instead advances the commercial or political concerns of the special interest groups that dominate the industry it oversees.

Difficulty: Medium Question 20 of 20

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Critics of government regulation often argue that it leads to 'regulatory capture,' which occurs when:

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