What is the main difference between economic regulation and social regulation?
What will be an ideal response?
Economic regulation involves only particular industries, including policies aiming at controlling prices or influencing the characteristics of specific products. In contrast, social regulation applies to all firms in the economy and aims at improving the quality of life by, for example, regulating product safety, advertising and environmental effects.
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When the level of the stock market is high, investment spending tends to be high, ceteris paribus
Indicate whether the statement is true or false
Firms in which of the following industries can earn an economic profit in the long run?
A) both monopolistic competition and monopoly B) perfect competition C) monopoly D) monopolistic competition E) monopolistic competition and perfect competition
Reading a Consumer Reports review of a vacuum cleaner before buying is the same way of dealing with information asymmetry as:
A. an employer requiring a drug test. B. an insurance company offering different deductible-level plans. C. a buyer choosing a used car from a brand dealership. D. a college charging a high tuition relative to other schools.
For this question, assume that the Marshall-Lerner condition does not hold. An increase in the real exchange rate will tend to cause which of the following to occur?
A) a reduction in NX and a reduction in Y B) a reduction in NX and an increase in Y C) an increase in NX and a reduction in Y D) an increase in NX and an increase in Y