warm-up: new vocabulary

WARM-UP Collect the worksheet from the front about banking

and the Federal Reserve System. Complete it using your notes- it is a review for the

quiz! Glue it into your journal We will go over the answers.

ObjectivesEssential Question

Examine the role of the gov’t in the marketplace (economy) to provide for and protect the consumer.

Language

• We will read, take notes and participate in a group activity on primary sources to learn about government involvement in the economy,

After the Quiz

List of things to do

1. Read and highlight “Lesson 7- Government Involvement in the Economy” on pages 227-228 then answer the questions.

2. Determine where to place the vocabulary terms to the right on the lesson 7 vocabulary list on pages 223-224.

3. Read and highlight page 236.4. FYI- by the end of class today

everything in the packet should be completed through page 238. The packet is due next week!

Vocabulary Terms – THEY ARE NOT IN ORDER!!!!!!!!!!!!!!!!!!!!!!

Use the textbook and/or dictionary Anti-trust law Consumer rights contract Environmental protection agency Federal communications commission Federal trade commission Global trade Monopoly Negotiate Private sector Public goods Public sector Regulate simultaneously warranty

• Legislation to prevent new monopolies from forming and police those that existAnti Trust Law

•total control over a market by one person or a group

Monopoly

•Exchange of goods and services among nations around the world

Global Trade

• To control or direct according to a rule or lawregulate

• Goods and services provided by the government for all citizens to use

Public Goods and Services

• A government agency that regulates and established guidelines for the mass media (FCC)

Federal Communications

Commission

• A government agency that sets guidelines the prevents air and water pollution (EPA)

Environmental Protection Agency

• A government agency that makes sure that businesses do not engage in unfair competition (FTC)

Federal Trade Commission

• A legal agreement between two parties to do something and is enforced by laws

contract

• Written statement by a company that promises the good condition of a product and states that the maker is responsible for repairing or replacing the product under certain conditions

warranty

• Set of laws that protects the user of goods and services against unfair business practices

Consumer rights

• To reach an agreement with others; compromisenegotiate

• Existing or happening at the same timesimultaneously

• The part of the national economy that is NOT under government controlPrivate

Sector

•The part of the economy that IS under government control

Public Sector

LESSON 7- “GOVERNMENT INVOLVEMENT IN THE ECONOMY” [ PAGE 237]Essential QuestionExplain the 3 roles of the government in the marketplace (economy)

NotesA. The United States is a mixed economy which means that the government has a role as well as private businesses and individuals

Notes

B. The US government provides public goods and services to the citizens at the federal, state and local levels.

1) Provided to many people simultaneously otherwise they may not have it

2) Examples ____________________________3) Pays for the public goods through tax revenue,

borrowed funds and fees (such to play basketball at Claude Moore Park)

Notes

C. The US government oversees businesses in order to promote and regulate the markets to encourage competition (better quality goods at lower prices)

1) Enforce antitrust legislation to discourage development of monopolies

2) Encourage companies to engage in global trade

3) Support new business start-ups (entrepreneurs)

Click the mouse button or press theSpace Bar to display the answer.

How could a monopoly affect consumers?

In a market controlled by a monopoly, the sole provider could charge any price it wanted. Without competition from other providers, consumers would either have to pay the high price or do without the product.

Notes D. The US government protects the consumer

1) Individuals have the right to private property, which is protected by negotiated contracts and warranties that are enforced by laws.

2) Protects public health and safety

3) Consumers may take legal action if their rights are violated = consumer rights

Here is a video discussing some of your consumer rights. I think it was made in Great Britain

http://www.youtube.com/watch?v=UlU6Xlz9DD0

Notes

E. Government agencies that regulate business and protect the consumer

These agencies oversee the way individuals and businesses function…

• Prevents air and water pollution

• Promote recycling

EPAEnvironmental Protection Agency • http://

www.youtube.com/watch?v=fOUESH_JmA0

• Regulates all mass media sources

• Responsible ratings on movies, games, TV

• Regulates illegal use of Internet

FCCFederal Communications Commission

• http://archive.courier-journal.com/VideoNetwork/3288625834001/FCC-Fines-Networks-2-Million-For-Using-Alert-Tone-In-Ads

• Prevents unfair business competition

• Regulates antitrust laws

• Handles consumer protection rights

FTC Federal Trade Commission • http://

www.consumer.ftc.gov/articles/0155-free-credit-reports

CLASS ACTIVITY1. Get onto 3 groups.2. Look over the pictures on your worksheet.3. Discuss among your group members which role of the

government or which government agency each picture represents.

4. Write it on the paper.5. Decide who from your group will come up and discuss

your pictures with the class.

Conclusion1. Write a 2-3 sentence summary to answer today’s

essential question.

2. Homework- Complete the matching worksheet for a grade.

Reading (page 171) Lesson 6: Government Involvement in the Economy

• As a mixed economy, the federal government’s role is to ____________________ and __________________________________ in the marketplace.

• Antitrust legislation stops the development of _____________.

• What are public goods and services?  • How does the government pay for the public goods and

services?

During the presidency of Theodore Roosevelt, the Department of Justice started more antitrust suits against corporations than it had in all of the three previous administrations. Because of this vigorous enforcement of the Sherman Antitrust Act, Roosevelt earned the nickname “The Trustbuster.”

THE GOVERNMENT AND THE ECONOMY

Provides Public Goods and Services

• Federal Govt (highways, postal)

• State Govt (roads, health)

• Local Govt (police, parks)

• How does the govt pay for it? 1. taxes (16th Amendment) 2. borrows funds 3. charges fees

Aids Marketplace Competition

• Anti-trust laws- to stop monopolies

• Encourages global trade

• Supports new business start-ups

• Agencies that regulate businesses and the marketplace 1. FCC 2. EPA 3. FTC

Protect the Consumer

• Allows for the ownership, use and rights to private property

• Ensures that contracts and warranties are followed

• Protects the public health, safety and welfare through recalls

• Role of the consumer 1. be a good consumer 2. be responsible

Other Govt Roles

• Controlling the budget through taxation, spending and borrowing

• Federal Reserve System

• **NEXT CLASS