4.2.3 Arguments for and against regulation

What is one benefit of regulation

Increases consumer surplus

Why does regulation increase consumer surplus

Lower prices

How does regulation affect product quality

Ensures minimum standards

Why does regulation improve safety

Enforces safety rules

How does regulation affect quality of life

Improves living conditions

What is harmonised regulation

Same rules for all firms

Why is harmonised regulation beneficial

Fair competition

How has labour market regulation affected the UK

Lower unemployment

What labour market outcome has regulation supported

Job creation

What is one cost of regulation for firms

Higher costs

Why can regulation raise firm costs

Compliance expenses

Give an example of a regulatory cost

Safer workplaces

How does minimum wage regulation affect firms

Higher labour costs

How can regulation affect firm profits

Lower profits

Why might profits fall under regulation

Price competition

How does regulation limit market power

Prevents collusion

What behaviour is restricted by regulation

Anti competitive practices