What term describes reducing government control over businesses and industries?

• A. Deregulation
• B. Regulation
• C. Liberalization
• D. Privatization

Answer: (A)

The main idea being tested is reducing government oversight of business. That is what deregulation means: removing or loosening rules and rules that limit how firms operate, price goods, or enter markets, so market forces and competition can play a bigger role.

Deregulation fits best because it directly describes cutting back government control. Regulation, by contrast, is about enforcing rules and restrictions on business. Privatization focuses on who owns the businesses—shifting ownership from government to private hands—which isn’t the same as easing the rules under which those businesses operate. Liberalization is a broader term about relaxing restrictions, often in trade, and doesn’t pin down the specific idea of scaling back regulatory authority over domestic industry.