Question

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.

Explanation:

In an economic system, regulation typically refers to actions taken by the government. Producers are more likely to be the ones being regulated rather than doing the regulating. Also, regulation is about imposing limits or restrictions, not removing them.

Answer:

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