1. Government rules promote and regulate the actions of business. The laws influence the production, selling, and pricing of goods and services.

2. Key Words interstate commerce intrastate commerce oligopoly monopoly trust antitrust laws contract breach of contract copyright patent trademark revenue subsidies tax incentives

3. Government as Regulator The three different levels of government are: Federal State Local

4. Government as Regulator The federal government focuses on business that takes place across all states, or interstate commerce.

5. Government as Regulator State governments focus on intrastate commerce, or business within each state.

6. Government as Regulator The four aspects of the economy that the government regulates are: 1.Protecting competition 2.Protecting business agreements 3.Protecting creative properties 4.Regulating the production process

7. Protecting Competition An oligopoly is when a small number of companies control the market without actually forming a trust. A company that controls an entire industry is called a monopoly.

8. Protecting Competition Rival companies can form a monopoly by banding together into a trust and agreeing not to compete with each other.

9. Protecting Competition Antitrust laws allow the government to break up monopolies, regulate them, or take them over.

10. Protecting Competition The government created the Federal Trade Commission (FTC) to regulate interstate trade. Its job includes setting standards for honest advertising.

11. The merger between America Online (AOL) and Time Warner is the largest media merger in history. The new company was worth $110 billion, after the merger. continued Limits on Competition

12. The Federal Trade Commission was concerned that the new AOL-Time Warner would limit competition. To avoid this, they required Time Warner to open its broadband pipes to competing Internet service providers. continued Limits on Competition

13. What are the advantages of the AOL and Time Warner merger? Analyze

14. Assignment: On Your Own Sheet of Paper Research 5 different Monopolies that have been broken up by the government and describe what the monopoly was and how it affected consumers List the reasons why the government considered the company a monopoly and what actions did they take to break it up State whether you think governments should regulate businesses or not and why.

15. One of the most basic ways the government protects business is by enforcing contracts. Protecting Business Agreements A contract is a legal agreement between two or more parties to conduct business.

16. Protecting Business Agreements A contract can be written, verbal, or even done with a handshake. A contract protects all the parties that agree to it.

17. Protecting Business Agreements When one party fails to live up to the terms of a contract it is called a breach of contract.

18. Protecting Creative Properties A copyright gives artists the sole right to own their creations, such as plays, photos, music, paintings, and books.

19. Protecting Creative Properties A patent gives you the sole right to own an invention.

20. Protecting Creative Properties A trademark is a brand name, trade name, trade characteristic, or a combination of these that is given legal protection by the federal government.

21. Regulating the Production Process The government tries to stop industrial pollutants with regulations. These regulations limit the amount of wastes that factories can discharge into the environment.

22. Government as Provider People pay for government-provided goods and services through taxes. The idea behind taxes is to pay for public goods and services and to share the cost among many people.

23. Government as Provider Government spending decisions directly affect how resources are allocated.

24. Government as Provider Government spending influences the distribution of income, or the way in which income is allocated among families, individuals, or other designated groups in the economy.

25. Providing Public Services The government is the single largest provider of services in the country.

26. Providing Public Services The government also provides public education, roads, courts, post offices, and many more.

27. Providing Public Services To pay for services, the government has to raise money. The money the government takes in is called revenue.

28. Providing Public Services Federal income tax is used to pay for highways, defense, and social security.

29. Providing Public Services Local taxes are used to pay for streets, libraries, and parks. All three levels of government fund public education.

30. Graphic Organizer PUBLIC TRANSIT PUBLIC TRANSIT GOVERNMENTSERVICESGOVERNMENTSERVICES Services the Government Provides Graphic Organizer PARKS AND RECREATION PARKS AND RECREATION COURT SYSTEM COURT SYSTEM PUBLIC EDUCATION PUBLIC EDUCATION WELFARE SUBSIDIES WELFARE SUBSIDIES POSTAL SERVICES POSTAL SERVICES PUBLIC SAFETY PUBLIC SAFETY

31. Providing Work The government is the single largest employer in the country. The federal government employs over three million people.

32. Providing Work For people temporarily out of work, the government provides unemployment insurance. It also provides welfare benefits and job training programs.

33. Assisting Business The government is the single largest consumer of goods and services. The government buys most of its equipment directly from businesses or has it specially made, such as military aircraft and fire trucks.

34. Assisting Business The Small Business Administration (SBA) offers different kinds of loans to aspiring small-business owners. The government also lends money to big businesses that are in financial trouble.

35. Assisting Business Subsidies are payments the government gives to businesses to make up for their losses.

36. Assisting Business To encourage socially responsible behavior, the government offers businesses reductions in taxes, or tax incentives.

37. Assisting Business Tax breaks are given to companies that conserve energy or use alternate sources of fuel. Loans and tax breaks are offered to businesses that do community development.

38. Assignment: Crossword Weaver- Terms: interstate commerce intrastate commerce oligopoly monopoly trust antitrust laws contract breach of contract copyright patent trademark revenue subsidies tax incentives