The correct answer is a testable idea.
A Hypothesis is a assumed explanation for a certain event or phenomenon. For a hypothesis to be accepted for scientific research, first and foremost, the hypothesis should be able to undergo research or testing. It must hold the element of being testable for it to be proven.
Answer: Regulators promote the interests of the firms they regulate.
Explanation: Capture theory of regulation asserts that regulators promote the interest of the firms they regulate. The result is that an agency that are charged with acting in the public interest, instead acts in ways that benefit the industry it is supposed to be regulating. Capture theory of regulation is a theory that explains agency established to regulate an industry for the benefit of society acts in the opposite to promote the benefit of the industry.
Regulatory capture is an economic theory which asserts that regulatory agencies may come to be dominated by the industries or interests they are charged with regulating. The captured agency begins to advance the interests of the industry rather than protecting the consumers. Problems arise when a regulating agency acts in the interests of regulated industry to the detriment of the general public.
Answer: The correct answer is : public; under provide
Explanation: Markets often cannot allocate resources efficiently, this failure is very frequent in the environmental field. Markets tend to provide very few environmental goods such as parks and open places but they do provide too much air pollution. One solution to this market failure is government regulation.
