What is regulation in an economic system? regulation is the placing of limits or restrictions on business activity by the government. regulation is the placing of limits or restrictions on business activity by producers. regulation is the removal of limits or restrictions on business activity by the government. regulation is the removal of limits or restrictions on business activity by producers.

Regulation is the placing of limits or restrictions on business activity by the government.

Explanation:

Regulation is the use of governmental tools to place limits or restrictions on certain practices of private initiative. The regulatory apparatus is set up to guarantee the integrity, solvency and sustainability of the economic system. Through regulation, the government inhibits opportunistic practices like the formation of cartel of prices and the practice of financial pyramid.

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to extend a country’s power and influence