What does de-regulation involve in terms of government intervention?

Multiple choice question for Applied Microeconomics. Select an option, then review the explanation below.

Show Answers

Eliminating obstacles that prevent new competitors from entering the marketEnforcing stricter rules for business behaviorRemoving entry barriers along with mandatory product quality requirementsDividing large private monopolies into smaller companies

Explanation

De-regulation refers to the government's action of reducing or eliminating restrictions that limit market entry, thereby allowing more competitors to participate freely.

Practice related questions from the same subject.

1.According to the theory of the second best, when perfect competition is not present, what price should a privatized firm set?
2.What is the primary purpose of antitrust laws and market regulation in relation to competition?
3.How is the electricity sector structured in the UK in terms of market characteristics?
4.Why do sales representatives often promote the sale of extended warranties?
5.What type of merger involves companies that operate in completely different industries?

What does de-regulation involve in terms of government intervention?

Explanation

More Applied Microeconomics MCQs