What is deregulation?

Deregulation refers to the process of reducing or eliminating government rules and restrictions that control how businesses operate in a particular market. This can involve removing barriers to entry for new companies, relaxing operational guidelines, or eliminating price controls. The fundamental idea behind deregulation is to foster competition, encourage innovation, and improve economic efficiency by allowing market forces, rather than government mandates, to determine outcomes in the marketplace.

In this context, the other choices do not accurately depict the nature of deregulation. Introducing more government control would be the opposite of deregulation. Implementing price controls refers to government setting limits on prices, which contradicts the principles of deregulation that favor market-driven pricing. Increasing taxes on corporations does not directly relate to the concept of deregulation, as taxes are a form of economic intervention rather than a reduction of it. Therefore, the correct answer highlights the essence of deregulation as a means to minimize government involvement in specific market activities.