Question

Regulation is defined as:

the government’s monitoring and controlling of the money supply.
the government’s taxing of certain businesses and products.
the government’s reduction in the amount spent on public services.
the government’s requiring businesses to perform specific actions.

Answer 1

Economic regulation refers to the government requiring businesses to conform to specific rules, which serves to maintain market order and protect individuals. It differs from monetary and fiscal policies, which manage money supply and government spending respectively.

Step-by-step explanation:

Regulation in the context of economics and government policy refers to the rules set by the government that control the activities within a market or industry. In the given descriptions, the closest definition of regulation would be the government’s requiring businesses to perform specific actions. This can encompass a range of directives from maintaining certain safety standards, to environmental regulations, ethical practices, and so forth. The overall aim of these regulations is to maintain an orderly market and to prevent practices that could harm individuals or the economy at large.

It's important to differentiate regulation from other governmental economic controls such as monetary policy, which involves the regulation of the money supply by a central banking system, and fiscal policy, which concerns government policies on taxing and spending. Both of these policies can influence the economy but are not considered regulations in the direct sense of requiring specific business actions. Lastly, while the government regulates, it can also lead to the creation of underground economies or black markets, where transactions happen outside of governmental oversight.

Answer 2

Regulation is defined as: the government’s requiring businesses to perform specific actions. The regulation involves set of a laws that control the way that a business can operate, or all of these laws considered together. Protecting the employees' rights and protecting the environment are some of the goals of the regulation.