Why does the government create regulatory laws that businesses must follow?

A. To assist entrepreneurs with starting their own companies
B. To merge with businesses and share control of national leaders
C. To raise tax revenue for national defense, social aid, and public works
D. To stabilize prices, keep unemployment low, and promote economic growth

I believe it is either A or D, but I'm not sure which...

Question

Why does the government create regulatory laws that businesses must follow?

A. To assist entrepreneurs with starting their own companies
B. To merge with businesses and share control of national leaders
C. To raise tax revenue for national defense, social aid, and public works
D. To stabilize prices, keep unemployment low, and promote economic growth

I believe it is either A or D, but I'm not sure which...

sleepyjess · Answer

Economics is part of math ;)

whitemonsterbunny17 · Answer

Well, think about what would happen if the government did not have those laws in place.

sleepyjess · Answer

Well, all of the local businesses wouldn't be able to hire people if the laws weren't in place because they probably wouldn't exist?

sleepyjess · Answer

so the unemployment rate is lower because the government has laws that businesses have to follow

whitemonsterbunny17 · Answer

Yes, that's correct!
Also, prices would skyrocket because, without laws to stop the prices from going too high, people wouldn't be able to buy their products, which could cause many bad outcomes.