ECONOMICS
MARKET FAILURES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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They limit economic freedom
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They seek to limit negative externalities
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They exist to protect consumers
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They are always popular with private businesses
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Detailed explanation-1: -Government regulations serve an important role in ensuring a safe, fair economy for small businesses and consumers alike, preventing them from being drained by larger corporations and unfair business tactics.
Detailed explanation-2: -Ideally, regulations are designed to protect individuals and/or the environment, yet regulations can negatively impact people’s ability to create innovative products or services to serve their communities and to employ people.
Detailed explanation-3: -Such regulations can limit pollution, increase worker safety, discourage unfair business practices, and contribute in many other ways to a safer, healthier, more productive, and more equitable society.
Detailed explanation-4: -What are some examples of government regulations? Examples of government regulations are financial regulations, taxes, and environmental protection regulations. Financial regulations explain the policies that influence the operation of the financial industry applied to banks, credit unions, insurance companies, etc.