Question

Select three effects of increased government regulation:

Answer 1

Answer:

Reduced corporate profits, Slower economic growth  ,Increased income tax rates

Explanation:

Increased government regulation implies economy type inclined more towards Socialist Economy.

This type of economy implies that there is government monopoly over socio economic power. So, there is less private sector power & reduced corporate profits. Income tax is likely to be high in such government power dominated economies. Lack of private entrepreneurial competition may also lead to slower economic growth in such economies.