Which of the following best exemplifies regulatory capture, or the capture theor

Question

Which of the following best exemplifies regulatory capture, or the capture theory of regulation?

Banks write the laws that will be enacted in an effort to govern the financial industry

A pollution tax is enacted to internalize a negative externality

Both negative and positive externalities are internalized or negated

Homeowners are forced to pay an additional tax in order to support a public park in their area

None of the above

Banks write the laws that will be enacted in an effort to govern the financial industry

A pollution tax is enacted to internalize a negative externality

Both negative and positive externalities are internalized or negated

Homeowners are forced to pay an additional tax in order to support a public park in their area

None of the above

Explanation / Answer

bank write the laws that will be enacted in an effort to govern the financial industry.

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