Exemplifies regulatory capture-capture theory of regulation

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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

Reference no: EM13986988

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