Deregulation is the reduction of government's role in controlling markets. Which of the following is result(s) of deregulation ?
Correct answer: C. Both of them
- A. Lead to freer market
- B. Lead to a more efficient marketplace
- C. Both of them
- D. None of them
Explanation
Deregulation removes or reduces government restrictions, allowing market forces to operate more freely. Greater competition and fewer barriers can also improve efficiency, so both statements follow.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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