Question

It was discovered that lead from paint leaked into the ground and caused many health problems, especially children. Today, the government has _____ to protect people from being harmed by lead.

externalities
regulations
production costs

Answer 1

Today the government has REGULATIONS to protect people from being harmed by lead.

Answer 2

regulations

Step-by-step explanation:

Regulations are instruments by which the government oversees productive activities to protect the interest and health of citizens. This is very common in economic sectors that tend to form cartels. The government regulates to prohibit this kind of practice. Regulations are also common in markets that affect people's physical integrity. For example, if a firm uses a toxic product as input, the government regulates the maximum amount that this input can be used without harming people's health. This is the case narrated, if it has been discovered that pen lead is bad for people, the government will regulate the pen market so that people's health remains safe.