Question

(5 of 6) Lobbying in Congress is an acceptable legal activity. Which hallmark of regulatory capture...

(5 of 6)

Lobbying in Congress is an acceptable legal activity. Which hallmark of regulatory capture does this fit under?

Paternalism

Venality

Infestation

Scale paradox

(6 of 6)

What is the necessary condition for regulatory capture to occur?

The existence of loopholes or ambiguities in laws

Lack of Congressional oversight

Market failure

Greed

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Answer #1

5)

Answer: (A)

Lobbying can be regarded as the paternalism here, few vested interest groups seek to influence the policymaking process of government.

6)

Answer: (A)

Existence of loopholes and ambiguities lead to favorable environment for regulatory capture.

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