Business and Government #3 Today I will: Take notes and be fascinated! So I can: Explain how government, by establishing laws and regulations, can improve operation of the private sector I will know I’m successful when: Distinguish between regulations that provide competition and those that control natural monopolies

What is your favorite possession? Write it down. How would you feel if someone tried to take it from you? What would you expect the government to do? Governments establish legal right to ownership, safe-guarding private property rights Private Property Rights – guarantees individuals the right to use their resources as they choose or charge others for the use Everything you buy is someone else’s private property Once you buy it, it becomes your private property This concept is at the heart of an economy and its ability to function Therefore, the government’s role is vital

Intellectual Property Rights – property rights to creators of new ideas or inventions Three types of intellectual property Patent – for inventions or technical advances Trademark - for unique symbols and commercial marks Copyright – for original expressions of an author, artist, composer or computer programmer

Monopolies and Competition Discussion Point – You own your own company Do you want competition? How does the government ensure a level playing field? Anti-trust Laws – laws that prohibit anti-competitive behavior and promote competition in markets where competition is desirable. Name the only business in the USA with an anti-trust exemption

Natural Monopolies – one firm can serve the entire market at a lower per unit cost than two or more firms Examples? Public Utilities – regulated by the government Public Transit – operated by the government Government Regulation Easier to administer and efficient with monopolies Difficult to administer & inefficient in competitive industries

Assignment 1) Look anywhere around the room or think about Kentwood in general and look for evidence of government regulation. Find as many examples as possible and record them. Can you find any? Who can find the most? 2)Write down a rule here at Kentwood that you A) like B) don’t like