Chapter 8

Question 1

Direct costs of regulation

Answer 1

1. Administering
2. Operating
3. Complying
4. Maintaining

Question 2

Indirect costs of regulation

Answer 2

1. Changes
2. Diminished
3. Protection
4. Innovation
5. Competition

Question 3

Advantages of statutory regulation

Answer 3

1. Abuse
2. Confidence
3. Economies of scale
4. Separate

Question 4

Disadvantages of statutory regulation

Answer 4

1. Outsiders
2. Unnecessarily costly
3. Desired aim
4. Slower
5. Best