Which of the following best explains why increased regulations cannot be the complete solution to reforming the economy?
A) The regulators are all corrupt.
B) It is extremely difficult to write regulations.
C) There are too many transactions to keep track of.
D) There are too many regulations to keep track of.

Question

Quizplus · Accepted Answer

C) While some regulators can be corrupt, and some regulations are unclear and hard to keep track of, the most important reason for why regulations cannot be the key to reform is that the economy is too complex; there are too many economic interactions to keep track of using regulations all by themselves. Rather than have regulations govern activity exclusively, there needs to be some kind of self-policing mechanism that prevents abuse and keeps the situation from getting out of hand.

Which of the Following Best Explains Why Increased Regulations Cannot