11ae gov in econ

A MIXED ECONOMY:

PROMOTING COMPETITION ANDPROTECTING CONSUMERS

SOL CE: 11 ae

The student will demonstrate knowledge of the U.S. economy by explaining how the government promotes competition, regulates

business, and protects consumer rights.

Benefits of competition:

more variety, better quality, lower price

The government supports competition by-

1. enforcing antitrust legislation to stop

monopolies.

antitrust- stopping one business from

controlling a market

2. engaging in global trade.

Total in Billions Country Name of U.S. $

Canada 33.02 China 23.55 Mexico 21.65 Japan 10.63 Federal Republic of Germany 9.47 United Kingdom 7.71 France 4.97 Korea, South 4.85 Netherlands 4.00 Brazil 3.18

3. supporting new business

start-ups, which also provides more jobs.

The government regulates businesses by setting up agencies to oversee the way individuals and companies do business.

•Environmental Protection Agency (EPA)-

protects human health and the environment

•Federal Communications Commission (FCC)-

regulates communications by radio, television, and satellite

•Federal Trade Commission (FTC)-

protects consumers and promotes competition

THE GOVERNMENT PROTECTS CONSUMER

RIGHTS BY:• Government agencies establish

guidelines that protect public health and safety.

•Negotiated contracts protect private ownership and are enforceable by law.

•Consumers may take legal action against violations of consumer rights.