Warm Up In general, what impact do Government Regulations have on price? Prices go up

Vocabulary Zoning Laws-Regulate where commercial and residential buildings can be built.

WARM UP HOW CAN THE ENVIRONMENT AND POLITICS IMPACT THE ECONOMY?

1.Which of the following statements is true? A.The EPA impacts the U.S. economic system by enforcing regulations regarding discrimination. B.The economy was greatly impacted in the 1970s when President Carter decided to regulate the airline industry as a public utility. C.Gov’t regulations regarding affirmative action and consumer safety have no impact whatsoever on the U.S. economy. D.Any action taken by the U.S. gov’t to regulate how producers conduct business inevitably affects the economy.

Impact of the Environment, Economic Conditions, & Politics

Economic Conditions Scarcity & inflation – People have to alter the way they live. – Forces consumers to set priorities and make economic choices. Bull Market When the stock market experiences a steady rise in prices over a period of time. Bear Market When prices fall steadily and the economy stalls b/c less money is being invested in the stock market. When times are good, people do not want the gov’t involved and when times are bad, people want the gov’t involved.

Environmental Factors EPA – Clean Air and Clean Water Act Regulate how much pollution companies can release into the environment and how they dispose of harmful waste. – Can produce shortages and economic hardships OPEC Oil Embargo Companies must be environmentally friendly. – If not, some consumers will not buy their products. SUV’s

Political Factors National level: Embargoes – Sanctions against a country that prevent two countries from trading with one another. – Limit the supply of certain products b/c of gov’t action that is meant to punish another country. Less Competition Cuba Local level: Zoning laws – Regulate where commercial facilities and residential housing can be built. – Conflicts arise between businesses who want to build in a certain area and citizens who don’t want their neighborhoods disturbed.

GRAPHIC ORGANIZER

EQ: HOW CAN POLITICS AND THE ENVIRONMENT IMPACT THE ECONOMY?

Reflection What is the difference between a Bull and Bear Market? What is an embargo? What do Zoning Laws govern?

Closing Question What do you feel was the biggest problem with the disaster at 3 Mile Island? The workers, management, government, etc. explain your answer.