Regulation

Definition

Regulation refers to government rules and enforcement mechanisms that control business practices, protect consumers, and safeguard public health and the environment. Regulations are typically created by executive agencies authorized by Congress.

Examples

  • The FDA regulates food safety and approves new pharmaceutical drugs before they can be sold
  • The EPA enforces the Clean Air Act by setting limits on industrial emissions
  • The SEC regulates stock markets to prevent fraud and insider trading
Key Fact

The Interstate Commerce Act of 1887 was the first major federal regulatory law, targeting railroad monopoly pricing.

Related Terms

Executive agencies Public policy Progressivism Monopoly

Study This Concept

Practice regulation with free review games in these units:

Economics Unit 5: Government and the Economy