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Which of the Following Is Not an Argument for the Regulation

Question 5

Multiple Choice

Which of the following is not an argument for the regulation of accounting information by pro-regulation proponents?


A) Regulation is needed because it is difficult to make 'free riders' pay for its production.
B) Regulation is needed to prevent wasteful over-supply, because users will overstate their need for information if they do not have to pay for it.
C) Regulation is needed to correct market failure and under-supply due to the reluctance of producers of information to charge 'free riders' for it.
D) Regulation is needed because the price system cannot function properly if it is not possible to exclude non-purchasers from consuming the good.

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