There are many examples in the automobile industry for regulation. one example is safety. automobiles must include seat belts, airbags, smoke detector, and child safety locks just to name a few.
for obtaining driver's licenses in urban areas world-wide, one needs to passexam to prove their competence. drivers with several violations on their license can be barred from driving even though they may still pass an exam, so one cannot not simply rely on passing an exam alone to procure a license unscathed; this too exemplifies regulation in the automobile industry quizlet!
what is an example of regulation in the automobile industry?
when the automobile industry is unregulated, cars are not made to perform safely. this can lead to an increased chance of injury or death caused by defective parts.
regulation ensures that drivers are safe when they operate their vehicles. for example, if a driver's vision becomes impaired due to anything from cataracts to diabetes, he/she cannot pass the required tests and will need assistance behind the wheel in order to legally participate on public thoroughfares.
which situation is the best example of regulation in an economy system?
a free market system is the best example of regulation in an economy system.
we have all seen examples of countries that are more socialist or communistic, where the government has strict control over not only what people can earn or buy, but also how they go about doing both. in contrast to these heavily regulated governments is the free market system with minimal regulations on wages and prices. when there are no set limits on supply with few limitations on demand, then it will ultimately lead to a “perfect equilibrium” between the two forces that will adequately regulate what goods are made available for purchase with relative equal distribution of income.
what is the regulation in an economic system?
the way the economy runs in most countries is regulated by what they call “departmental authorities.” these are usually providing insurance, debt, banking, international transactions, housing, cars and other consumer goods.
the fed was created to regulate credit and interest levels. it's how banks work together on monetary policy.
but at the heart of it is just making sure that all commerce happens fairly amidst each nation's own currency — so that every dollar spent correlates with an equal dollar worth of performance for society. ultimately it comes down to some decent math skills to make sure everything balances out so nobody gets too rich while someone else gets too poor… or vice versa.
which group creates regulations in mixed market economies quizlet?
mixed market economies operate under a principal-agent model, where the manufacturing regulator is making decisions with regards to the production level.
the agent has knowledge of the market and wants to maximize their profits as they trade rent against allocating resources towards production. this means that an agent would try to meet demand only if it would generate a profit for them by meeting those needs, which can potentially lead to disruptions in demands due to insufficient production from suppliers. the principal has an incentive to produce as many goods and services as needed and provide its customers what would maximize profits–a hard capitalistic stance on regulation: increasing efficiency through more control on fixed factors of production such as labor. without this increase in efficiency, firms could face
