1. Role of Government in a Market Economy
SSEF5 The student will describe the roles of government in a market economy.
a. Explain why government provides public goods and services, redistributes income, protects property rights, and resolves market failures.
b. Give examples of government regulation and deregulation and their effects on consumers and producers.

2. Protecting Private Property Rights
The Role of Government Use p in the EOCT Coach book. Write3-4 your section. Description, examples
Protecting Private Property Rights
Promoting competition
Providing Public Goods/Services
Resolving Market Failures
Redistributing Income
Regulation and Deregulation

3. Protecting Private Property Rights
Protects private property and intellectual property through laws, contracts, patents, and copyrights
Key component of a market economy that is based on private ownership and voluntary exchange
Disputes settled by judicial system

4. Provides Public Goods and Services
The benefits of public goods are shared by everyone in a society.
The government pays for public goods by collecting taxes
There is no incentive for private companies to provide public goods
Examples: roads, schools, national defense, police/fire dept., parks

5. Redistributing Income
Taxes pay for transfer payments – supplement those who have lower incomes or cannot work
Those who earn more are taxed more
Gov’t maintains a min. standard of living for citizens
Examples – welfare, food stamps, Social Security, disability, unemployment, WIC, Medicaid

6. Promoting Competition
Market economy depends on free competition to keep prices low and quality high
Prevents monopolies and trusts
Example – AT&T

7. Resolving Market Failure
Occurs when a private company benefits from production for which other people end up paying some of the costs
Unintended consequenses
Pollution, BP/Gulf of Mexico Spill
Regulations result from resolving market failures

8. Regulation and Deregulation
Using laws to control business activity
Intended to benefit the public (protect consumers)
Regulation – making a law that restricts companies
Deregulation – taking the law or restriction away
Examples – breaking up monopolies, fining polluters, taxes on alcohol and tobacco, safety regulations

9. Writing Assignment ½ - 3/4 of a page
Write a story or a narrative about what life in the United States would be like if there was no intervention or involvement from the government in the economy. Think about what kinds of things we might not have or how businesses might operate without government involvement or regulations. Be creative!