1.  1. Bell Ringer: For each category (1-4), tell me whether Mall 1 or Mall 2 would be better. 2. Video Questions : You will watch 3 video clips that explain the basics behind government regulation in a “free” market. Click on the picture or copy and paste the link into your web browser. Then, answer the questions on my webpage in the document titled Day 3 – Video Questions. Open the questions first. 3. Sherman Act : You will determine if 7 different business arrangements violate the law. Download the document titled Day 3 – Sherman Act Scenarios. 4. The FTC : You will read an info sheet and answer 2 questions about this government organization. Download the document titled Day 3 – Facts about FTC. 5. Price Controls : You will read a current event article and answer 5 questions. Download Day 3 – Price Control on Gas. Answer questions on slide 9. 6. Minimum Wage and Unions : You will take appropriate notes and answer the discussion questions. Use PowerPoint slides 10, 11, and 12. 7. Exit Slip: Answer these questions in complete sentences. Today’s Plan Please put answers to the Bell Ringer, all questions and notes, and the Exit Slip on the same paper. Label each new task with the appropriate heading.

2.  Mall #1 4 clothing stores 2 shoe stores 1 fast food restaurant Mall #2 1 clothing store 1 shoe store 1 fast food restaurant Bell Ringer: Which mall would be better in each of the categories below? Categories: 1.Customer Service 2.Quantity of Products 3.Acceptable Prices 4.Quality of Products

3.   What are the four categories in which businesses can compete with one another? Competition – Pizza, Pizza, Pizza http://www.ftc.gov/bcp/edu/micr osites/youarehere/site.html#/pizza -pizza-or-pizza Video Questions: Open Day 3 – Video Questions to use for the next 3 slides.

4.   What is a merger?  How can a merger be positive?  How can a merger be negative? Mergers – Is Bigger Always Better? http://www.ftc.gov/bcp/edu/microsites /youarehere/site.html#/is-bigger-always- better Video Questions:

5.   What were some negative aspects of businesses or “trusts” in the 1800’s?  Why were anti-trust laws created?  Why was the Federal Trade Commission created?  What is a monopoly?  What is price fixing? “The Mall” Slideshow – History of FTC http://www.ftc.gov/bcp/edu/microsites /youarehere/site.html#/mall-history- slideshow-spectacular Video Questions:

6.  You are a group of attorneys working for the Justice Department. You have been asked to look at a list of potential cases and recommend what action if any should be taken. Be sure to identify the reasons that support your decisions. Possible Actions include:  No action - activity appears to be legal.  Sue the company - activity violates the Sherman Act Does this Conduct violate the Sherman Act? Open Day 3 – Sherman Act Scenarios on my website!!! Complete it for this slide.

7.  1.How does the FTC fit within our system of checks and balances? (what branch is it part of and how is it “checked” by another?) 2.What is the job of each bureau within the FTC and how do they do this job?  Bureau of Competition  Bureau of Consumer Protection  Bureau of Economics The FTC – Breaking it Down Use the handout provided to answer these questions. Open Day 3 – Facts About The FTC for this assignment!!!

8.   Government mandated minimum or maximum prices that can be charged for specified goods. Governments sometimes implement price controls when prices on essential items, such as food or oil, are rising rapidly.  Ceiling price controls set a maximum price that may be charged but do not prohibit transactions at lower prices below the ceiling price (for example, rent control).  Floor price controls set a minimum price that may legally be charged but do not prohibit transactions at higher prices above the floor price (for example, minimum wage laws). Government Regulation: Price Controls Open Day 3 – Price Controls on Gas on my website!!! Complete it for this slide. Write the underlined parts as notes.

9.  Think on your own: 1) How does the high cost of fuel impact other aspects of the economy? Consumer spending? Employment? Read the article provided and answer these questions: 2) Why do some people think the government should place a “price ceiling” on gas? 3) When was the last time the government used price controls on gas and why? 4) Identify four consequences of these price controls. 5) Do you think the government should use price controls on gas? Should price controls be imposed on gasoline?

10.   Price of labor = wage rate  Wage rate = demand for the good/service you produce + your productivity  Minimum wage = hourly wage rates are not allowed to fall below a certain level. What will happen if Congress sets a minimum wage rate that is higher than the equilibrium wage rate? Government Regulation: Minimum Wage Notes begin again here. Write everything that is underlined.

11. If minimum wage is “too high,” the supply of labor will be greater than the demand for labor. Is it better to have more people employed that make really low wages? Is it better to have fewer people employed that make decent wages?

12.   Labor unions organize to get higher pay and benefits for their members.  Two views of labor unions  Labor unions make it difficult to establish reasonable work standards. Therefore, they make companies less competitive.  Labor unions give a valuable collective voice to their members. Happy workers are more productive. Without unions, workers are less satisfied, look for new jobs, and the company keeps spending time/money to train new, less productive workers.  Which do you agree with? Labor Unions

13.   Why is competition a good thing between businesses?  What are floor price controls?  What are labor unions? Exit Slip: