5
QuizMultiple Choice

Regulatory Policy — Quiz

Question 5 • Economics

Which is a function of regulatory agencies?

Answer
A
creating legislation for businesses
B
encouraging negative externalities
C
creating new business opportunities
D
encouraging business compliance

Explanation

Regulatory agencies set and enforce rules that businesses must follow. Their function includes encouraging business compliance with those rules, so D is correct. They do not create legislation; lawmakers do that.

AI-written and checked against the verified answer.

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