The social interest theory of regulation is defined as the
A) use of regulations to maximise firms' profits.
B) implementation and removal of regulations on cable TV.
C) removal of regulations on business activities.
D) use of regulations to assure an efficient use of resources.
E) use of rate of return regulation.

Question

Quizplus · Accepted Answer

The social interest theory of regulation is focused on using regulations to ensure an efficient use of resources, rather than solely benefiting firms or completely removing regulations. Regulations are used to ensure that businesses operate in a way that benefits society as a whole, rather than just maximizing profits for individual firms. Therefore, the best choice is D: use of regulations to assure an efficient use of resources.

The Social Interest Theory of Regulation Is Defined as the