One criticism of government regulation of the economy is that the regulations themselves can raise the cost of economic activity,also known as __________.

Question

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Compliance costs refer to the expenses incurred by businesses or individuals to comply with government regulations. These costs include fees, paperwork, and legal expenses such as hiring lawyers to ensure compliance. Therefore, government regulations can lead to higher compliance costs, which can increase the overall cost of economic activity.

One Criticism of Government Regulation of the Economy Is That