The Government & Consumer Protection Standard 1.4.2

Do Now What kind of current issues or events occurred over break (4 day weekend)? What is a “regulation”?

Essential Question What are the three macroeconomic goals of any economic system?

Three Goals of an Economy 1. Stable Prices 2. High Employment 3. Economic Growth

Essential Question: What role does the government play in protecting consumers and enforcing contracts?

Regulation Our government protects consumers by regulating the health and safety of services and products provided in the U.S. Regulation: rules the government create to say how companies should properly conduct their business Regulation can prevent among many… Excess pollution Worker protection (minimum wage)

Health and Safety Federal Regulatory Agencies: government programs meant to protect consumer health and safety Food and Drug Administration: enforces laws to ensure purity, effectiveness, and truthful labeling of food, drugs, and cosmetics; inspects production Equal Employment Opportunity Commission: investigates and rules on charges of discrimination by employers/ job providers

Consumer Rights The government also protects the property rights of individuals and of businesses to own, sell, buy, and enhance property. According to due process of law in U.S. constitution Sometimes the government can take your property it is called: Eminent Domain 015/10/18/trump_im_only_for_eminent_ domain_when_its_for_creating_jobs.html 015/10/18/trump_im_only_for_eminent_ domain_when_its_for_creating_jobs.html

Do Now What are the 3 economic goals of any economic system? Describe what Eminent Domain is What is the current sales tax rate?

Patent / Trademark Contracts One way to “incentivize” and protect entrepreneurship and is through gov. enforced patent and trademarks Patent: a government license that enables only the creator of an invention to make or sell their creation Trademark: a symbol, word, or words legally registered or established by use as representing a company or product.

Essential Question How does the government utilize incentives (or discentives) to motivate what people produce/trade?

Government Incentives Incentive: strategy that encourages someone to do something Example (Electric Cars): Chevrolet Volt eligible for a federal tax credit of $7500!! Example (Energy Efficient Windows):

Government Incentives Disincentive: strategy that encourages someone to stop something Key Example: *Smoking* Government has continued to increase taxes on cigarettes to encourage smokers to stop Taxes go toward gov. services Price of a Pack of cigarettes in Michigan Aug. 1 st 2014 = $8.00

Government Incentives Discussion: Smoking has decreased but what is the true cause? Are there other factors that could play into the decrease besides a tax? Advertisements? Education?

Some Info for you… State Avg. Price per Pack Cost Over One Year Cost Over 20 Years Michigan$8.00$2,920$58,400

Taking a Stand Are cigarette taxes themselves effective in getting people to stop smoking?

Review Guide Sales Tax: Current Rate Property Taxes: What is their role? Medicare, Medicaid, role of government 3 macro economic goals What is a regulation?