Question

Economic regulation occurs when

a. monopoly is the optimal market structure.
b. the industry is highly competitive.
c. the product is important to economic welfare.
d. the government owns the assets of the industry.

Answer 1

The correct option is D.
Economic regulation refers to imposition of rules by a government, backed by the use of penalties that are specifically targeted at modifying the economic behavior of individuals or industries in the private sector. Regulation is often used to narrow down choices in the targeted area.