Government's ability to reduce private-sector economic risks through laws and regulations would encourage all of the following, except:

Question

Quizplus · Accepted Answer

Laws and regulations are designed to reduce economic risks for private sector entities, thereby encouraging them to make investment, introduce new products and processes, and start new businesses. However, there is no correlation between laws and regulations and the reduction of private goods and services. In fact, laws and regulations are designed to facilitate the growth of the private sector, not limit it. Therefore, choice D is the answer.

Government's Ability to Reduce Private-Sector Economic Risks Through Laws and Regulations