The social interest theory of regulation suggests that the political process and regulations will _______ and the capture theory of regulation suggests that the political process and regulations will _______.

Question

The social interest theory of regulation suggests that the political process and regulations will _______  and the capture theory of regulation suggests that the political process and regulations will _______.

Quizplus · Accepted Answer

The social interest theory of regulation posits that regulations are designed to protect and benefit the public at large, often by minimizing inefficiencies such as deadweight loss. In contrast, the capture theory suggests that regulatory agencies are "captured" by the industries they are supposed to regulate and end up serving the interests of producers rather than the public.

The Social Interest Theory of Regulation Suggests That the Political