1. The Role of Government in Business
Chapter 11
The Role of Government in Business

2. Describe ways government regulates business.
Learning Objectives
Describe ways government regulates business.
Why It’s Important
Government rules promote and regulate the actions of business.
The laws influence the production, selling, and pricing of goods and services.

3. Government as Regulator
Goal is to protect both business and the public from unfair, unsafe, and unethical business practices
FED – focus on interstate commerce, or business that takes place across all states
STATE - focus on intrastate commerce, or business within each state
LOCAL - focus on cities/counties

4. 4 FUNCTIONS OF GOV’T REGULUATION1 2 3 4

5. Protecting Competition
Oligopoly - is when a small number of companies control the market
Monopoly – when one company controls an entire industry
Why is this bad for the consumer??
Price/Selection
Rival companies can form a monopoly by banding together into a trust and agreeing not to compete with each other

6. Protecting Competition
Antitrust laws - allow the gov’t to 1) break up monopolies, 2) regulate them, or 3) take them over (Ex: Microsoft case)
Federal Trade Commission (FTC) regulates interstate trade (false claims about products)

7. ?????????????????????????
This level of government focuses on intrastate commerce.
State government

8. Protecting Business Agreements
Contract - is a legal agreement between two or more parties to conduct business
- can be written, verbal, or a handshake.
breach of contract - when one party fails to live up to the terms of a contract

9. Protecting Creative Properties
Copyright - gives artists the sole right to own their creations, such as plays, photos, music, paintings, and books
Patent gives one the right to own an invention
Trademark is a brand name, trade name, trade characteristic, or a combination of these that is given legal protection by the federal government (logos, symbols, etc)

10. Regulating the Production Process
Government tries to stop industrial waste through regulations.
Federal/State/Local governments all try to limit the amount of waste that factories can discharge into the environment.

11. ??????????????????????
What are the four ways government regulates business?
Protect competition
Protect business agreements
Protect creative properties
Regulate production process

12. HOMEWORK
Rd. Pgs
Questions 1-3 on Pg. 189

13. Learning Objectives Explain why the government collects taxes.
Name 3 services the government provides for our economy.
Why It’s Important
Government rules promote and regulate the actions of business.
The laws influence the production, selling, and pricing of goods and services.

14. WORKING FOR TAXES
During an average eight-hour workday, nearly three hours of your workday goes to paying federal, state, and local taxes. This comparative chart shows where people work the most and least for taxes.
Name some ways in which the government spends the money for projects or services on your community.
Source: Tax Foundation

15. Government as Provider
Revenue – money gov’t takes in (taxes)
Federal income tax - used to pay for highways, defense, and social security
Local taxes are used to pay for streets, libraries, and parks
State Taxes / Sales Taxes
All 3 levels of gov fund public education

16. Services the Government Provides
Graphic Organizer
Graphic Organizer
Services the Government Provides
PUBLIC
SAFETY
PUBLIC
TRANSIT
COURT
SYSTEM
GOVERNMENT
SERVICES
PARKS AND
RECREATION
PUBLIC
EDUCATION
POSTAL
SERVICES
WELFARE
SUBSIDIES

17. Providing Work & Aiding Citizens
The FED gov employs over 3 million people.
For people temporarily out of work, the government provides unemployment insurance
The government provides welfare benefits and job training programs.
Social Security provides insurance by taking a certain amount of money out of your paycheck and setting it aside for your future retirement.

18. Assisting Business The government single largest consumer of G&S
buys most of its equipment directly from businesses or has it specially made, such as military aircraft and fire trucks
sets up trade barriers to protect USA business

19. Assisting Business
Subsidies are payments the government gives to businesses to make up for their losses
Tax incentives - gov offers businesses reductions in taxes to be socially responsible
Tax breaks are given to companies that conserve energy or use alternate sources of fuel. Loans and tax breaks are offered to businesses that do community development.

20. ???????????????????????
What are the three ways government provides for society?
Providing public services
Providing work
Assisting business

21. HOMEWORK
Chapter Review on Pg. 190
Questions 2-5