When the Sarbanes-Oxley Act That Established New Accounting Rules Was

Multiple Choice

When the Sarbanes-Oxley Act that established new accounting rules was passed, analysts suggested that the new rules would not improve protections for the investing public, but it would result in more work for accountants. If the professors are right, these regulations are an example of:

A) laissez faire.
B) demerit goods.
C) government failure.
D) comparative advantage.