Regulatory Capture is usually caused:
A) by Federal authorities who seize agencies that have been found to be corrupt and not pursuing the public interest.
B) by greedy government officials who see an opportunity to threaten business people with arbitrary regulations as punishment if they don't pay bribes.
C) by direct bribes from regulated industries to government officials who are in a position to help the firms they regulate.
D) as a natural byproduct of the fact that the personnel staffing government agencies often come from the industries that they regulate, and vice versa.

Question

12-12-2022
Business

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Regulatory Capture is usually caused:
A) by Federal authorities who seize agencies that have been found to be corrupt and not pursuing the public interest.
B) by greedy government officials who see an opportunity to threaten business people with arbitrary regulations as punishment if they don't pay bribes.
C) by direct bribes from regulated industries to government officials who are in a position to help the firms they regulate.
D) as a natural byproduct of the fact that the personnel staffing government agencies often come from the industries that they regulate, and vice versa.

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afreenmajid123 afreenmajid123 · Answer 1 · 2022-12-17T11:24:45+01:00

By greedy government officials who see an opportunity to threaten businessmen with arbitrary regulations as punishment if they don't pay bribes.

Regulatory capture is usually caused by federal authorities seizing agencies that have been found to be corrupt and not pursuing the public interest.When regulatory capture occurs, a special interest is prioritized over the general interest of the public,resulting in a net loss to society.As a state of affairs,a regulatory body is said to be captured when it is dominated by a particular company or industry its regulations reflect the interests of that company or industry,rather than,for example,the interests of consumers or the general public.

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