Section 3.2 Government and Consumer Functions

 The roles government plays in our free enterprise system  The supply and demand theory

The government plays four roles in our free enterprise system. 1. Provider of Services 2. Supporter of Business 3. Regulator ▪ Consumer and Worker Protection ▪ Business Protection 4. Competitor ▪ Examples: Tennessee Valley Authority (TVA), U.S. Postal Service, Amtrak

 Deciding Which Businesses Survive ▪ The U.S. is known as a consumer-oriented society. ▪ Consumers have the power to decide which products will be produced and which companies will stay in business.  Determining Prices  Supply and Demand Theory ▪ Surpluses ▪ Shortages ▪ Equilibrium