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Research into genetically modified crops has led to significant productivity gains for countries such as the United States that employ these techniques. Countries such as

Research into genetically modified crops has led to significant productivity gains for countries such as the United States that employ these techniques. Countries such as the European Union member nations, however, have imposed controls on the import of these products, citing concern for public health. The European Union's regulation of genetically modified crops is an example of
A. capture hypothesis, if their goal is to protect their population from potential health hazards.
B. moral hazard problem if they want to reduce their risks of getting ill.
C. share-the-gains, share-the-pains hypothesis, if they have genuine health concerns.
D. lemons problem because there is a potential for asymmetric information.
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