What is the main aim of regulatory policy?

The primary aim of regulatory policy is to control or manage activities in specific sectors. Regulatory policies are established by governments to set standards, guidelines, and rules that define how particular industries or sectors operate. By doing so, these policies help ensure safety, protect public interests, maintain fair market competition, and prevent abuses or harmful practices.

In various sectors, such as environmental regulation, financial services, and public health, regulatory policies play a critical role in enforcing compliance with legal standards, thereby safeguarding consumers and the environment. The implementation of these policies is crucial for maintaining a balanced and functional market that aligns with public welfare and regulatory goals.

The other choices—deregulating markets, promoting free enterprise, and reducing government oversight—do not capture the essence of regulatory policy, which is fundamentally about establishing oversight and controls rather than eliminating them.