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 ________.
A) seek to minimize deadweight loss; serve the interests of the producers
B) try to maximize the producers' economic profits; seek to minimize deadweight loss
C) be unaffected by deadweight loss; increase the firms economic profits
D) ignore producers' interests and concentrate on consumers' interests; seek to minimize firms' economic profits

Question

Quizplus · Accepted Answer

The social interest theory of regulation suggests that regulations are designed to benefit society as a whole, which includes minimizing deadweight loss. The capture theory of regulation suggests that regulations are influenced by the industries they regulate, often serving the interests of producers.

The Social Interest Theory of Regulation Suggests That the Political