A unit of government created to set and enforce standards for a particular industry.

• A. Merger
• B. Poverty Rate
• C. Regulatory Agency
• D. Tax Equity

Answer: (C)

The main idea is how government oversees a specific industry through an organization created to set rules and enforce them. A regulatory agency is a government body given the authority to establish standards for a particular sector and to monitor compliance, ensuring safety, quality, and fair practice. This role is exactly what the item describes: a unit of government whose job is to create industry standards and enforce them. For example, such agencies set safety or quality rules and can enforce penalties for violations. The other options don’t describe a government body with rulemaking and enforcement powers: a merger is a business action merging firms; the poverty rate is a measure of income distribution; tax equity refers to fairness in how taxes are designed.