What is regulation in an economic system?

O Regulation is the placing of limits or restrictions on business activity by the government

Regulation is the placing of limits or restrictions on business activity by producers.

Regulation is the removal of limits or restrictions on business activity by the government.

Regulation is the removal of limits or restrictions on business activity by producers.

Question

Braylen Hunter

Social Studies

Today, 17:29

What is regulation in an economic system?

O Regulation is the placing of limits or restrictions on business activity by the government

Regulation is the placing of limits or restrictions on business activity by producers.

Regulation is the removal of limits or restrictions on business activity by the government.

Regulation is the removal of limits or restrictions on business activity by producers.

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Answers (1)

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Nataly Christensen · Answer 1

Regulation in an economic system is the placing of limits or restrictions on business activity by the government.

Explanation:

To ensure the balance of production of certain commodities and services within the economy, the government has to intervene. This intervention is carried out by the government through imposing restrictions on the players functioning in the economy. The major reason the government imposes regulations is for the upliftment of small businesses and capping of large businesses.