Answer: They limit what and how people do things.
Step-by-step explanation:
When it comes to the economy, governments set economic rules known as regulations, collect taxes, and spend money. The idea is that they use public funds to provide services that anyone and everyone should have equal access to, and set the rules of the game for everything else—i.e. private services —to happen in a fair way. By setting rules and regulations, governments create the framework in which markets operate. Mostly we think of regulations as governments telling us what not to do—don’t pay an employee less than minimum wage, don’t pour toxins in a river, don’t sell spoiled food. But governments can also regulate the economy in more behind-the-scenes ways, like establishing property rights, issuing money, and regulating the stock market.