The theory that regulation seeks an efficient use of resources is the
A) social interest theory.
B) producer surplus theory.
C) consumer surplus theory.
D) capture theory.
E) deadweight loss theory.

Question

Quizplus · Accepted Answer

The social interest theory posits that regulation is meant to achieve an efficient use of resources, where the benefits to society as a whole outweigh the costs incurred by individual agents. This theory emphasizes the importance of government intervention in markets to correct market failures and ensure that resources are allocated efficiently.

The Theory That Regulation Seeks an Efficient Use of Resources