Question

Why do government regulations lead to higher prices for consumers?

A. Enforcement of these regulations raises taxes.

B. Most regulations result in transfer payments.

C. The costs of compliance are passed on to the consumer.

D. Regulations have a diminishing marginal utility.

Answer 1

C. The costs of compliance are passed on to the consumer

Step-by-step explanation:

Took the test.

Answer 2

C. The costs of compliance are passed on to the consumer