What is meant by direct regulation? Give a few examples of direct regulation
What will be an ideal response?
Direct regulation or command-and-control regulation refers to direct actions by the government to control the level of a certain activity. These could include fishing quotas, zoning restrictions, antismoking laws, and blue laws (laws that restrict liquor sales on Sundays).
You might also like to view...
If the nominal interest rate is 2 percent and the inflation rate is 4 percent, then the real rate of interest is
A) -2 percent. B) 2 percent. C) 3 percent. D) 6 percent.
Hiring a white worker may be statistically safer for the employer than hiring a minority
Indicate whether the statement is true or false
Suppose the banking system as a whole has $600 billion in deposits and $66 billion in reserves, with a reserve ratio of 11 percent. What happens to the stock of money if the Fed lowers reserve requirements by changing the reserve ratio to 10 percent?
Suppose initially the federal budget is balanced. The economy then enters a period of expansion. What is likely to happen to the federal budget?
A. It will show a surplus. B. It will show a deficit. C. It will remain balanced. D. It will automatically stabilize.