The social interest theory of regulation is that
A) regulators help producers maximize economic profit.
B) regulation seeks to increase the government's revenue.
C) regulation causes producers to produce at a point where they are earning normal profits.
D) regulation seeks an efficient use of resources.
E) regulation focuses on the consumers' interests and ignores producers' interests.

Question

Quizplus · Accepted Answer

The social interest theory of regulation suggests that regulation is put in place to ensure that resources are efficiently used in a way that benefits society as a whole. This means that regulation is not solely focused on maximizing economic profit for producers or increasing government revenue, but rather on promoting the overall well-being of society.

The Social Interest Theory of Regulation Is That