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The government fulfills many roles and performs many activities in business. 2

Protects Economic Growths Regulator Promotes Competition Provider of Service and support Protects employees and consumers

 The government: ◦ increases/decreases tax rates ◦ regulates amount of money in the economy with the Federal Reserve Bank ◦ negotiates international treaties and trade agreements 4

Set up agencies to protect workers and consumers. EX:  FDA  EEOC  OSHA  CPSC Protect private property rights. EX: Patents Trademarks Sherman Antitrust act (Monopolies)

 Environmental Protection Agency (EPA) ◦ was established in 1970 ◦ was created to protect the natural environment in which we live ◦ stresses clean air, land and water ◦ creates laws to prevent businesses from harming the environment 6

 Regulation ◦ is when the government sets strict rules affecting businesses within certain industries  Deregulation ◦ is the removal or relaxation of the rules affecting businesses within certain industries 7

 Acts passed to ensure competition: ◦ Sherman Antitrust Act of 1890  allows the government to break up companies with control of a market  prevents monopolies ◦ Clayton Antitrust Act of 1914  passed to amend and clarify the Sherman Antitrust Act ◦ Federal Trade Commission Act of 1915  established the Federal Trade Commission 8

 Federal Trade Commission  promotes fair competition  prevents false/deceptive advertising 9

U.S. Postal Service competes with UPS and Fed EX TVA provides electricity to rural areas in the South, competes with electric companies National Parks and Campgrounds compete with privately owned tourist attractions.

Also, the government is responsible for the social welfare system and providing Medicare and Medicaid.

 The government buys goods and services provided by private industry  The government constructs and provides maintenance for transportation systems 12

 Disaster assistance - FEMA  Small Business Administration – set up to provide educational materials to small business owners for success.  Largest consumer of goods (U.S. made) – military and defense materials.  Establish trade alliances - maintains relationships with foreign countries to ensure trade

 The government: ◦ provides information and training ◦ publishes information businesses can use  rate of inflation, unemployment, consumer spending ◦ provides direct loans, loan guarantees and subsidies of various types ◦ established the Small Business Administration  provides low-cost loans, advice and other assistance to small businesses 14

 The government regulates: ◦ public schools, which offer instruction in skills relating directly to jobs in business ◦ funding for rehab and retraining of workers ◦ state and local employment agencies 15

 Employees are protected through numerous government legislations designed to do the following: ◦ provide a safe work environment ◦ provide freedom from discrimination and harassment ◦ protect from unlawful termination ◦ ensure certain rights to privacy ◦ provide the right to participate in labor unions ◦ establish minimum wage 16

 The government creates laws and agencies protecting the eight basic rights of the consumer  Examples include: ◦ Consumer Product Safety Commission ◦ Fair Packaging and Labeling Act ◦ Fair Credit Reporting Act 17

Deciding which businesses survive Determining prices

Consumers keep businesses in business. How?!?!