The effectiveness of regulation is sometimes criticized because
A) regulators try to please everybody.
B) of the high profits in regulated industries.
C) regulators don't know how to regulate industries.
D) regulators usually have been closely associated with the industries they regulate.

Question

Quizplus · Accepted Answer

The statement that "regulators usually have been closely associated with the industries they regulate" suggests that they may have biases or conflicts of interest, which can compromise their ability to objectively and effectively regulate these industries. Thus, this criticism undermines the effectiveness of regulation. Option A is not a valid criticism, as regulators can prioritize the public interest over industry interests. Option B is a result of regulation, not a criticism of its effectiveness. Option C is oversimplified and not accurate, as regulation can involve complex trade-offs and require specialized knowledge.

The Effectiveness of Regulation Is Sometimes Criticized Because