Question

Why does the US government create regulatory agencies? Check all that apply.

to create fair competition between producers
to limit the knowledge of certain consumers
to allow producers to have greater freedom
to protect consumers’ health and safety
to prevent the formation of monopolies

Answer 1

- to create fair competition between producers — Yes. (Agencies enforce rules that keep markets competitive.)
- to limit the knowledge of certain consumers — No. (Regulation generally increases consumer information and protection.)
- to allow producers to have greater freedom — No. (Regulation typically restricts harmful practices.)
- to protect consumers’ health and safety — Yes. (Agencies set standards and enforce protections, e.g., FDA, EPA.)
- to prevent the formation of monopolies — Yes. (Antitrust enforcement and agencies like the FTC promote competition.)