The actions of regulatory agencies that promote the interests of government employees over those of the public can be explained, in part, by the:
A) theory of public finance.
B) public choice theory of regulation.
C) capture theory of regulation.
D) theory of market failure.

Question

Quizplus · Accepted Answer

Public choice theory of regulation suggests that regulatory agencies may act in their own interest or in the interest of government employees, rather than the public, due to self-interest and incentives within the political and regulatory environment.

The Actions of Regulatory Agencies That Promote the Interests of Government