What is regulation in an economic system?

Regulation in an economic system refers to the rules and laws established by governments or regulatory bodies to control and guide economic activity. These regulations aim to promote fair competition, protect consumers and the environment, and ensure financial stability. They can cover various sectors, including finance, labor, and industry, and often address issues such as pricing, safety standards, and market entry. Overall, regulation seeks to balance the interests of different stakeholders and mitigate market failures.