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

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

a. compliance with laws

b. advantages for producers

c. control of markets

d. advantages for government

e. control of externalities

Answer: The correct options are a, c and e.

The next type of market structure is the mixed market structure which is a combination of both the free market economy and the regulated market economy hence the significance of the role of regulation to fulfill some set objectives. It is always the long-term result of regulation that all economic activities stick to the law since it forces them to follow the punitive provisions of the legal system. Out to tame the markets also, the regulation prescribes rules and ethical conduct that business is to adhere to; cartelization and monopolization are eliminated; and consumer rights are protected. Moreover, the other benefit that the regulation factors in the mixed market economy serve is the control of the externalities that imply the social cost which is negative such as pollution, and public health among other ill-effects from business activities. In this regard, by regulation, the government attempts to minimize the adverse impacts of externalities on society as well as increase the number of social gains. It is important to note, however, that in such cases, certain gains are being offered to either the producers or the government; nonetheless, the aim of regulation involves the issue of coordination, Market structure, and Externalities.