Question

1. Select a Government Regulation. Identify a particular government regulation of your choosing that in your opinion has either been successful or a failure. Briefly state the original purpose of this regulation and whether it has changed over time. Then, concisely defend your view on whether you favor the expansion or reduction of the enforcing regulatory agency.

Answer 1

Type of government regulation selected: Minimum wage

The minimum wage law was established in the US economy after taking into considerationRegulatory authorities are commonly set up to enforce safety and standards, and/or to protect consumers in markets where there is a lack of effective competition or the potential for the undue exercise of market power. Examples of regulatory agencies that enforce standards include the Food and Drug Administration in the United States and the Medicines and Healthcare Products Regulatory Agency in the United Kingdom; and, in the case of economic regulation, the Office of Gas and Electricity Markets and the Telecom Regulatory Authority in India.

In some instances, regulatory bodies have powers to require that companies or organizations operating within a particular industry adhere to certain standards or deliver a set of outputs ex ante. This type of regulation is common in the provision of public utilities which are subject to economic regulation. Regulatory bodies in this area will:

require individuals, companies or organizations entering the industry to obtain a license;

set price controls;

accept filing of tariffs specifying rates and types of services to be provided; and

require the provision of particular service levels.