Which of the following best describes an agency that enforces government regulations in a specific area of the economy?

• A. Non-profit organization
• B. Private corporation
• C. Trade union
• D. Regulatory agency

Answer: (D)

Verified step by step guidance

1. Understand the role of different types of organizations in the economy: Non-profit organizations typically focus on social causes without profit motives; private corporations operate for profit; trade unions represent workers' interests.
2. Recognize that an agency enforcing government regulations is a public entity tasked with overseeing compliance within a specific sector of the economy.
3. Identify that such an agency is commonly known as a 'regulatory agency' because it regulates and enforces rules set by the government.
4. Recall examples of regulatory agencies, such as the Environmental Protection Agency (EPA) or the Securities and Exchange Commission (SEC), which illustrate this function.
5. Conclude that among the options given, the term 'regulatory agency' best fits the description of an entity enforcing government regulations in a specific economic area.