Question

Use what you have learned to identify reasons that governments create regulations in mixed market economies. Check all that apply.

Answer 1

It can be used as a government intervention tool keep consumers and suppliers in order. An example of a regulation can be the minimum age to buy cigarettes and alcohol to stop teen substance abuse. Governments would create regulations in mixed market economies as it gives incentives to be more efficient. It limits government interference due to harsh rulings. There will be some what of a close in the equality gap as everyone would be treated fairly and there would be more stability in the economy