What is typically a purpose of regulatory policies in economic systems?

Regulatory policies in economic systems are designed primarily to protect consumers and ensure fair practices within the marketplace. These policies are established to create a framework within which businesses can operate fairly, thus preventing deceptive practices, fraud, and exploitation. By regulating industries, governments aim to maintain a level playing field, ensuring that consumers have access to safe and reliable products and services. This involves setting standards for product quality, enforcing truthful advertising, and safeguarding consumer rights.

While increasing competition in monopolistic markets, monitoring and controlling inflation, or promoting exports might be objectives of economic policy, they do not encapsulate the core function of regulatory policies as effectively as protecting consumers and ensuring fair practices does. The latter directly addresses the relationship between businesses and consumers, emphasizing the importance of ethical conduct and trust in the economic system.