Regulation (Economics)

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  • The oversight and control of economic activities by government or its agents to ensure safety and health, efficiency, transparency, and equity. The desire to maximize profit without adequate consideration of social responsibility has prompted governments to regulate the activities of businesses.

    Today, regulation can be found in almost all facets of business undertakings because of the potential of external effects and inequity. Regulations cover industrial activity and pollution, worker safety and compensation, consumer protection laws (including the rights to know and product safety), the requirement to disclose material information in securities markets and in banking and investment, and business organization (to ensure competition).

    Combination laws or antitrust laws regulate business collusion and illegal pricing activities. Such regulation goes back to the 19th century during the era of ...

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