Question

One way in which the government intervenes in the economy is by establishing a regulatory agency or commission that has authority over a particular industry or product. Because the firms that are regulated have an incentive to influence those​ actions, regulation may lead to ________-

Answer 1

Regulatory Capture

Step-by-step explanation:

Regulatory Capture -

It refers to the situation of corruption , when the political group helps to serve the commercial or political interest of the minor constituency like the geographic are , industry etc. , is referred to as regulatory capture .

It is considered to be a method by which government gets the right to intervene into the economy .

Hence , from the given information of the question ,

The correct answer is regulatory capture .