Hayoung Lim, Chapter 4, Question 6

I was surprised to see that with more government regulations an international quality standard is lower. I had always made assumptions that more rules would encourage better efficiency as well as less corrupt government intentions. It does make sense though looking further into it because one of the rules of economics is that everyone works for their own self interest. Therefore if a government employs excessive regulations it would lend to corruption as the bureaucrats who enforce it would want to seek out the best for themselves through the regulations and undermine the public goods such as reducing pollution. It is interesting the fine balance that has to be kept to keep the government encouraging public goods to be made but yet not have to much control in the market when it is not necessary.