Deregulation is defined as which?

Deregulation is defined as which?

• A. Increasing government restrictions.
• B. Increasing regulatory restraints on the conduct of individuals or private institutions.
• C. Reducing or eliminating regulatory restraints on the conduct of individuals or private institutions.
• D. Government regulating all economic activity.

Answer: (C)

Deregulation means loosening rules that govern economic activity, giving markets and private actors more freedom to operate. The statement that describes reducing or eliminating regulatory restraints on the conduct of individuals or private institutions captures that idea perfectly. The other options describe the opposite: increasing regulatory restrictions or having the government regulate all economic activity, which are forms of more Regulation rather than deregulation. Deregulation focuses on reducing constraints, not imposing them.

Deregulation means loosening rules that govern economic activity, giving markets and private actors more freedom to operate. The statement that describes reducing or eliminating regulatory restraints on the conduct of individuals or private institutions captures that idea perfectly. The other options describe the opposite: increasing regulatory restrictions or having the government regulate all economic activity, which are forms of more Regulation rather than deregulation. Deregulation focuses on reducing constraints, not imposing them.