Which of the following outcomes may result from a lack of regulations in a free market?

A lack of regulations in a free market can lead to child labor exploitation because, without oversight or legal restrictions, businesses may prioritize profit over ethical considerations and labor rights. In an unregulated environment, companies might seek to cut costs by employing children, who often work for lower wages and in unsafe conditions. This exploitation reflects the darker side of market dynamics, where the drive for profit can overshadow moral responsibility, leading to significant social issues.

In contrast, increased competition, heightened consumer protection, and economic stability generally require some level of regulation to ensure fair practices and protect stakeholders. While increased competition can lead to innovation and lower prices, it typically thrives in a regulated environment where fair play is enforced. Consumer protection laws are essential for safeguarding buyers from fraudulent practices and ensuring product safety, which would be compromised in the absence of regulation. Lastly, economic stability often relies on regulatory frameworks that mitigate risks and prevent market failures. Hence, the correct choice effectively illustrates a critical concern in unregulated markets.