Regulation is not always intended to correct market imperfections but instead can be the result of political forces that serve objectives other than economic efficiency.

Question

Quizplus · Accepted Answer

This statement is true. While regulation can be used to correct market imperfections, it can also be influenced by political forces that have different objectives, such as protecting certain groups or industries, promoting social and environmental goals, or increasing government control. Therefore, the regulatory process may not always prioritize economic efficiency as the main goal.

Regulation Is Not Always Intended to Correct Market Imperfections but Instead