5
QuizMultiple Choice

Competition and Free Enterprise — Quiz

Question 5 • Economics

What is regulation in an economic system?

Answer
A
Regulation is the removal of limits or restrictions on business activity by the government.
B
Regulation is the placing of limits or restrictions on business activity by producers.
C
Regulation is the removal of limits or restrictions on business activity by producers.
D
Regulation is the placing of limits or restrictions on business activity by the government.

Explanation

Regulation means government rules that place limits or restrictions on business activity. For example, the government may require businesses to meet safety standards. Removing restrictions is deregulation, so choice A describes the opposite.

AI-written and checked against the verified answer.

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