SOL 13a: How does the United States government promote and regulate marketplace competition?
Ways the government promotes marketplace competition
· Enforcing antitrust legislation to discourage the development of monopolies
· Engaging in global trade
· Supporting business start-ups
Government agencies that regulate business
· FCC (Federal Communications Commission): regulates TV and radio broadcasts
· EPA (Environmental Protection Agency): regulates pollution
· FTC (Federal Trade Commission): investigates unfair business practices
These agencies oversee the way individuals and companies do business.
· Enforcing antitrust legislation to discourage the development of monopolies
· Engaging in global trade
· Supporting business start-ups
Government agencies that regulate business
· FCC (Federal Communications Commission): regulates TV and radio broadcasts
· EPA (Environmental Protection Agency): regulates pollution
· FTC (Federal Trade Commission): investigates unfair business practices
These agencies oversee the way individuals and companies do business.
SOL 13b: What types of goods and services do governments provide? How do governments pay for the goods and services they provide?
Characteristics of most goods and services provided by government
· Provide benefits to many simultaneously
· Would not likely be available if individuals had to provide them
· Include such things as interstate highways, postal service, and national defense
Ways governments pay for public goods and services
· Through tax revenue
· Through borrowed funds
Through fees (e.g., park entrance fees)
· Provide benefits to many simultaneously
· Would not likely be available if individuals had to provide them
· Include such things as interstate highways, postal service, and national defense
Ways governments pay for public goods and services
· Through tax revenue
· Through borrowed funds
Through fees (e.g., park entrance fees)
SOL 13c: How does the government influence economic activity?
Government tax increases reduce the funds available for individual and business spending; tax decreases increase funds for individual and business spending.
In other words, when taxes go UP, people have LESS money to spend. When taxes go DOWN, people have MORE money to spend.
Increased government borrowing reduces funds available for borrowing by individuals and businesses; decreased government borrowing increases funds available for borrowing by individuals and businesses.
In other words, imagine the government walks into BB&T Bank, and takes out a loan that is larger than normal. This means there is LESS money available at the bank than normal, so there is less for people to borrow. But, when the government takes out less money, that means there is MORE money left for people to borrow.
Increased government spending increases demand, which may increase employment and production; decreased government spending reduces demand, which may result in a slowing of the economy.
When the government spends more, they create more jobs as different states and cities decide to do more work, such as road construction. These jobs require more people to do the larger amount of work. This may stimulate the economy (make it grow). If the government spends less, than these jobs and projects may not be funded, and so work stops and there are less workers needed. This could slow down the economy.
Increased government spending may result in higher taxes (they need to pay for the new projects!); decreased government spending may result in lower taxes.
The 16th Amendment to the Constitution of the United States of America authorizes Congress to tax personal and business incomes.
In other words, when taxes go UP, people have LESS money to spend. When taxes go DOWN, people have MORE money to spend.
Increased government borrowing reduces funds available for borrowing by individuals and businesses; decreased government borrowing increases funds available for borrowing by individuals and businesses.
In other words, imagine the government walks into BB&T Bank, and takes out a loan that is larger than normal. This means there is LESS money available at the bank than normal, so there is less for people to borrow. But, when the government takes out less money, that means there is MORE money left for people to borrow.
Increased government spending increases demand, which may increase employment and production; decreased government spending reduces demand, which may result in a slowing of the economy.
When the government spends more, they create more jobs as different states and cities decide to do more work, such as road construction. These jobs require more people to do the larger amount of work. This may stimulate the economy (make it grow). If the government spends less, than these jobs and projects may not be funded, and so work stops and there are less workers needed. This could slow down the economy.
Increased government spending may result in higher taxes (they need to pay for the new projects!); decreased government spending may result in lower taxes.
The 16th Amendment to the Constitution of the United States of America authorizes Congress to tax personal and business incomes.
SOL 13d: What is the role of the Federal Reserve System?
As the central bank of the United States, the Federal Reserve
System
· has the duty to maintain the value of the national currency (dollar)
· regulates banks to ensure the soundness of the banking system and the safety of deposits
· manages the amount of money in the economy to try to keep inflation low and stable
acts as the federal government’s bank.
System
· has the duty to maintain the value of the national currency (dollar)
· regulates banks to ensure the soundness of the banking system and the safety of deposits
· manages the amount of money in the economy to try to keep inflation low and stable
acts as the federal government’s bank.
SOL 13e: What is the role of the United States
government in protecting consumer rights and property rights?
Individuals have the right of private ownership, which is protected by negotiated contracts that are enforceable by law.
Government agencies establish guidelines that protect public health and
safety.
Consumers may take legal action against violations of consumer rights.
Government agencies establish guidelines that protect public health and
safety.
Consumers may take legal action against violations of consumer rights.
SOL 13f: Why does the government issue currency and
coins?
When the United States government issues coins and currency, people accept it in exchange for goods and services because they have confidence in the government.
Government issues money to facilitate this exchange.
The three types of money generally used in the United States are
· coins
· Federal Reserve notes (currency)
deposits in bank accounts that can be accessed by checks and debit cards.
Government issues money to facilitate this exchange.
The three types of money generally used in the United States are
· coins
· Federal Reserve notes (currency)
deposits in bank accounts that can be accessed by checks and debit cards.