1. Chapter 16 Section 2

2. Providing Public Goods Public goods Merit good Demerit goods

3. Promoting the General Welfare Income redistribution Social-insurance programs Social Security Workers’ compensation Unemployment insurance

4. Promoting the General Welfare Public-assistance programs-welfare Supplemental Security Income Temporary Assistance for Needy Families Medicaid

5. Regulation and Economic Stability Regulating Economic Activity Externalities Government regulations –Protecting consumers –Promoting competition –Supervising labor and management –Regulate negative by-products of the production process

6. Regulation and Economic Stability Ensuring Economic Stability –Business fluctuations –Unemployment –High inflation –Recessions or depressions

7. Regulation and Economic Stability Critics of Government Involvement –Merit goods should be privately funded –Redistribution programs discourages personal initiative, affects incentives, and harms self- development –Government regulations raise the prices of goods and services