Meaning, reasons, advantages and disadvantages of deregulation. - SS3 Commerce Past Questions and Answers - page 1
What is the meaning of deregulation?
Increasing government regulations in an industry
Reducing or eliminating government regulations in an industry
Implementing strict controls on businesses
Reducing or eliminating government regulations in an industry
Why is competition promoted through deregulation?
To decrease consumer choices
To increase government control over industries
To lower prices and improve product quality
What is one advantage of deregulation?
Reduced consumer protections
Increased market failures
Improved economic growth and investment
What is one potential disadvantage of deregulation?
Potential for market failures
Enhanced equal access and affordability
Weakened market competition
What is the main reason for promoting deregulation?
Reducing economic growth and investment
Stimulating market competition and innovation
Encouraging monopolies in the market
How does deregulation contribute to economic efficiency?
Deregulation reduces bureaucratic red tape, streamlines processes, and encourages businesses to be more innovative, adaptable, and responsive to market demands, leading to improved economic efficiency.
What are some potential concerns associated with deregulation?
Potential concerns with deregulation include market failures, reduced consumer protections, and disparities in access and affordability, particularly for vulnerable populations or underserved areas.