Which are results of regulation in a mixed-market economy? Check all that apply.

1: compliance with laws

2: advantages for producers

3: control of markets

4: advantages for government

5: control of externalities

The answers are only 1 and 5. I just took the test.

Compliance with laws

Control of externalities

Explanation:

Which are results of regulation in a mixed-market economy? Check all that apply.

compliance with laws

advantages for producers

control of markets

advantages for government

control of externalities

Two reasons for regulatory policy were specifically stated in the course. They were to enforce the law and to control externalities. So in this question, the answers would be compliance with laws and control of externalities.

At first it may seem like control of markets is also correct, but it is not because a mixed-market economy places more emphasis on individuals' personal interests controlling the market instead of government regulations.

Answer: Option 1 and Option 5

Explanation:

In mixed economies under the government regulation most of the production is done by private ownership. There is very little government intervention. The main aim of the government intervention is to make sure that the private business activities comply with the law of the country.

Another result of government regulation is to control the externalities created by these business structures. Government ensures there is no externality which affects the market as well as the people. Due to these regulations there is no advantages for producer or government. Also the markets cannot be controlled with these regulations in mixed market economy.