Question

what are the pros and cons of regulations in economics?

Answer 1

Regulating economics means how government is intervening in control of economy of country. Intervention may be in terms of rigid ,partial,and very liberal.

Regulation impact differently for different type of economy.

when government intervention is rigid, generally it tend to closed economy like former USSR ,here government decide the production ,marketing and price of commodity

	pros	cons
	self-reliant,less affected by globalisation	must be self sufficient
	import and export cost that is less transport cost	band of luxary good is less
	easy to regulate the internal goods easily frame laws to control economy	less innovative less consumer friendly

Mixed economy where government tries to balance out market between consumer and producer  

pros	cons
boost to private sector	instability
freedom of production and consumption	ineffectiveness
greater utilization of resource	decision making delay
planning reach to ground	corruption
more competitive	dependency on globalisation
social welfare	powerful private sector can threat country unity

Liberal economy works on lessaiz faire i.e government has no business to be in bussines.

pros	cons
customer driven economies	limitation in product choice
absence of bureaucracy and corruption	profit motive market
more friendly to do bussiness more innovative	market fail led collapse of economies example great depression 1929
government more focus on providing social welfare	may give rise to monopoly in market