A criticism of social regulation is that it
A) contributes to the growth of natural monopoly.
B) increases the rate of innovation in the economy.
C) decreases the influence of the Federal government on business.
D) results in many unintended and costly side effects.

Question

Quizplus · Accepted Answer

Social regulation often attempts to address complex social problems, but can have unintended and costly consequences for businesses and consumers alike. For example, regulations intended to reduce pollution may lead to higher costs for businesses and consumers, or regulations intended to promote workplace safety may increase costs for employers and reduce job opportunities for workers. Additionally, regulations can sometimes be difficult to enforce, leading to regulatory capture or other forms of noncompliance.

A Criticism of Social Regulation Is That It