1. The Government & Consumer Protection
Standard 1.4.2

2. What kind of current issues or events occurred over break?
Do Now
What kind of current issues or events occurred over break?
What is a “regulation”?

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

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

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

6. 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)

7. 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

8. 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

9. 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.

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

11. 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):

12. 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. 1st 2014 = $8.00

13. 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?

15. Daily Tweet/Taking a Stand
Prompt: Are cigarette taxes themselves effective in getting people to stop smoking?