Question #19

Reading: Reading 7 Economics of Regulation

PDF File: Reading 7 Economics of Regulation.pdf

Page: 9

Status: Unattempted

Part of Context Group: Q18-19
Shared Context
- A possible economic rationale for Calistose increase in demand for equities is that the regulation intervention has lowered: A) the savings rate. B) externalities of public goods. C) informational friction.
Question
Which industry could possibly benefit from Calisto's regulatory changes?
Answer Choices:
A. Accountancy
B. Oil
C. Tobacco
Explanation
Oil industry will be negatively impacted by environmental regulations. Tobacco industry will be negatively affected by Calisto government actions of adopting regional practices or forming a regional policy. Accountancy may benefit from required actions of companies wanting to list their stocks on Calistose Exchange, creating more demand for Calisto accounting services.
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