Which of the following could be described as being responsible for regulating sectors of the economy in which it is judged that the free market does not work properly to protect the public interest?
A) government corporations
B) federal agencies
C) independent executive agencies
D) independent regulatory commissions
E) quasi-governmental organizations

Question

Quizplus · Accepted Answer

Independent regulatory commissions are specifically tasked with regulating sectors of the economy where the free market is not sufficient to protect the public interest, such as industries with natural monopolies or high potential for negative externalities. Examples include the Federal Communications Commission and the Securities and Exchange Commission. Government corporations, federal agencies, independent executive agencies, and quasi-governmental organizations may also have regulatory functions, but they are not specifically designed to regulate market failures.

Which of the Following Could Be Described as Being Responsible