Deregulation of an industry will always lead to an improvement in economic eﬃciency.

Question

Quizplus · Accepted Answer

Deregulation can lead to improved economic efficiency in some cases, but not always. It depends on the specific industry and the regulations that were in place. Removing regulations could result in increased competition and innovation, leading to lower prices and higher quality products or services. However, it could also lead to negative externalities such as environmental degradation, reduced safety standards or reduced consumer protection. Therefore, the impact of deregulation on economic efficiency requires careful analysis on a case-by-case basis.

Deregulation of an Industry Will Always Lead to an Improvement