Chapter 27, Problem 27.1LO

To determine

Difference between economic regulation and social regulation.

Explanation of Solution

Economic regulation	Social regulation
Economic regulation discusses about the various rules and regulations that the economic firms and government agencies needs to abide by.	Social regulations discuss the regulations that society needs to abide by.
Economic regulation controls the economic situation of the economy. It is the type of government regulation which helps to set the price of firms, entry of the firms, and regulation of various economic agencies.	Social regulation focuses on the control or correction of externalities.
Regulates various things like minimum wage, trade barriers, outsourcing (Protectionism), import duty, privatization, national health insurance, price ceiling or price floor, social security benefits, medical benefits, senior citizen benefits etc.	Social regulation focuses on environmental control measures, health and safety regulations, disaster management, and restrictions on advertisements. It also includes the restrictions on pornography, gun control, homosexuality, abortion, gambling etc.

Economics Concept Introduction

Introduction:

Economic regulation: Economic regulation discusses about the various rules and regulations that the economic firms and government agencies needs to abide by. Economic regulation controls the economic situation of the economy. It is the type of government regulation which helps to set the price of firms, entry of the firms, and regulation of various economic agencies. Economic regulations regulate various things like minimum wage, trade barriers, outsourcing (Protectionism), import duty, privatization, national health insurance, price ceiling or price floor, social security benefits, medical benefits, senior citizen benefits etc.

Social regulation:

Social regulations discuss the regulations that society needs to abide by.