regulation The establishment. by the government, of rules aimed at influencing the behavior of firms and individuals. Regulation can involve setting prices, establishing product and workplace standards, and limiting entry into an industry.
eminent domain The power of a government to take an individual's property for public use if the owner is fairly compensated.
regulatory agency A unit of government created to set and enforce standards for a particular industry or area of economic activity.
merger The combining of two or more separately owned firms into a single firm.
deregulation The process of removing government restrictions on firms in order to promote competition or encourage economic activity.
common resource A resource that everyone has access to and that can easily be overused or destroyed. Examples include the atmosphere and the oceans.
government failure Inefficient allocation of resources caused by government intervention in the economy.
poverty rate The percentage of the population that has a family income below a government-defined threshold, or poverty line.