Regulation in economic system is the placing of limits or restrictions on business activity by the government. Â
Further Explanation:-
Regulation can be called as a legislation that is imposed by the government on Private organizations and on individuals in order to do the modification of economic behaviors. This conflict can take place between public services and commercial procedures and it is done in the interest of the people who use those services along with those who are not part of these transactions and because of all these, most of the governments therefore have some control or regulation in order to take control and manage the possible conflicts that could occur.
The main reason behind the regulation of Economy is to ensure that delivery of a safe and appropriate service and not to discourage the effective functioning and development of business. In many countries this regulation looks after control of consumption in regards to alcohol and prescribing drugs. Regulation in economic system places the limits and restrictions in regards to the business activity of the government.
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Answer Details:
Grade – High School
Subject – Economy
Chapter – Economy Regulation
Keywords – Regulation, Economy Regulation, Conflicts, Limitation, Trade, Government, Consumption, Functioning, restrictions, Appropriate. Â