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Another area in which the government has a philosophical influence on the economy is regulation. Regulation like other government activities can be analyzed within both a positive and a normative structure. In general, a case for government regulation can be made in instances in which the private sector of the economy could be expected to operate with less than optimal outcome.
There are many vague laws and rules in regards to government regulations. This makes it hard for people to totally understand. This does not mean that regulation should never be used. Relatively, it means that one must take a realistic view of what regulation can hope to accomplish in light of the incentive structure of the public sector...
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