Process of removing government restrictions on firms in order to promote competition or encourage economic activity.

• A. Deregulation
• B. Regulation
• C. Common Resource
• D. Tax Equity

Answer: (A)

Deregulation means removing government restrictions on firms to promote competition and economic activity. When rules that limit entry, pricing, or behavior are reduced or eliminated, markets can respond more freely to supply and demand. This openness tends to invite more firms to enter, increases competition, lowers barriers to innovation, and can boost efficiency and economic growth. That directly captures the idea of taking away constraints to let the market work more vigorously.

In contrast, regulation is about imposing or maintaining rules, not removing them; a common resource refers to a resource owned collectively and potentially overused; tax equity concerns fairness in how taxes are distributed. These do not describe the act of removing restrictions to spur competition.