Question

which situation is the best example of regulation in an economic system? a retail business just opened a new store in a community close to its original location. a small clothing shop slashed it prices to attract customers from a larger department store nearby. a farmers market has offered a special deal to customers from a nearby yoga school. a state agency has been created to monitor the production and distribution of sports drinks.

Explanation:

Regulation in an economic system involves government or state - level oversight. The first three options (opening a new store, slashing prices, offering a special deal) are actions of private businesses. The last option, where a state agency is created to monitor production and distribution, is an example of state - imposed regulation. It is about a governing body (the state agency) overseeing economic activities (production and distribution of sports drinks) which is characteristic of regulation in an economic system.

Answer:

A state agency has been created to monitor the production and distribution of sports drinks.