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Regulation & Deregulation

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Please pick up a Warm Up sheet from the folder on the table in front, get out a pen or pencil, and wait for today’s question to appear on the board.

Warm Up What are some of the reasons that companies merge?

Monday, March 9, 2015 Objective: Students will be able to describe the role of government in the US free enterprise system and the changes in that role over time Purpose: Businesses and individuals need to know about changes in the role of the government in the economy in order to make adjustments to their economic activities when change occur

Reminders 57 schools days remaining You must pass this class in order to graduate

Promoting and Encouraging Competition Preventing monopolies and stopping anticompetitive practices Ensuring that market participants have access to truthful information Resolving the effects of externalities, such as environmental conditions

Promoting and Encouraging Competition Fulfilling the need for public goods, such as highways, military Regulate industries for the health and safety of the public Minimize the effects of business cycles in an effort to achieve stable economic growth

Rules and Regulations Rules and regulations are created to protect individuals and businesses Examples of Regulations Food safety standards Minimum Wage Obamacare (cannot deny coverage to those with preexisting conditions)

Changes Over Time New Regulations Consumer Protection Deregulation Example: Regulations on lending passed after 2009 Consumer Protection Example: Unleaded gasoline Deregulation Example: 1978 Airline Deregulation Act

Video: Airline Deregulation https://www.youtube.com/watch?v=n1iVVLrLwLU