Which of the following is an example of deregulation ? A. The price of cable TV has risen to $40 a month in November 2013. B. Banks have lowered the interest rates to increase growth. C. The quota on milk production has been lifted by the Common Agricultural Policy of the EU. D. No employer can pay an hourly wage rate of less than $12 to its employees.

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Business

Kramer

22 January, 07:52

Which of the following is an example of deregulation ? A. The price of cable TV has risen to $40 a month in November 2013. B. Banks have lowered the interest rates to increase growth. C. The quota on milk production has been lifted by the Common Agricultural Policy of the EU. D. No employer can pay an hourly wage rate of less than $12 to its employees.

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Iliana Conley · Answer 1

Answer: Option C

Explanation: In simple words, the removal of restrictions on some particular product or industry by the authorities is called deregulation.

Deregulation is the process that is used when the Govt of any country wants to develop a particular industry and wants the free market flow in that industry or that particular product.

This process usually happens in economies due to the political pressures. Hence from the above we can conclude that the correct option is C.