Question

Why did President Carter want to reduce rules for businesses?

Answer 1

To lower costs for businesses and consumers

Answer 2

The correct answer is C.

Deregulation is usually benefitial for businesses as it allows firms to enjoy a greater degree of freedom and adopt policies that enable them to lower production costs and, therefore, to became more productive (produce the same with less resources, or produce more quantity with the same amount of resources). In turn, a more efficient production model allows firms to lower the prices of their products, and to become more competitive in the markets, incresing the amount of sales and their final profits. Moreover, consumers are also benefited because they can purchase the product at a lower price than before.