One of the Basic Differences Between Social and Economic Regulations

question 250

Multiple Choice

One of the basic differences between social and economic regulations is that

• A) economic regulations only apply to financial institutions while social regulations apply to a greater variety of institutions.
• B) social regulations only apply to non-profit organizations while economic regulations apply only to for-profit organizations.
• C) economic regulations cover only particular industries while social regulations apply to all firms in the economy.
• D) economic regulations focus on the banking industry while social regulations focus on monopolies.

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Definitions:

Good

A material item or service that satisfies a need or desire and is available for purchase or trade.

Demand-Side

Economic policies or concepts focused on increasing demand for goods and services as a way to stimulate economic growth.

Market Failures

Situations where the allocation of goods and services by a free market is not efficient, often leading to a net social welfare loss.

Shortage

The amount by which the quantity demanded of a product exceeds the quantity supplied at a particular (below-equilibrium) price.