1. Ch. 11 The Role of Government in Our Economy
11.1
Government as Regulator

2. How Government Regulates Business
First role is to foster economic success
Interstate Commerce: Business that takes place between states
Intrastate Commerce: Business that takes place within a state

3. Protecting Competition
Monopoly: When a company controls an industry or is the only one to offer a product or service
2 examples of a monopoly
Oligopoly: when a small number of companies controls an industry
2 examples of an oligopoly
Trust: A group of companies that band together to form a monopoly and cut out competition
Antitrust Laws: Allow the federal government to break up monopolies, regulate them, or take control of them.

4. Federal Trade Commission
The FTC was created in 1914, its purpose was to prevent unfair methods of competition in commerce as part of the battle to “bust the trusts.”
The FTC deals with issues that touch the economic life of every American. It is the only federal agency with both consumer protection and competition jurisdiction in broad sectors of the economy.
The FTC pursues vigorous and effective law enforcement; advances consumers’ interests by sharing its expertise with federal and state legislatures and U.S. and international government agencies; develops policy and research tools through hearings, workshops, and conferences; and creates practical and plain-language educational programs for consumers and businesses in a global marketplace with constantly changing technologies.

5. Protecting Business Agreements
Contract: A legally enforceable agreement between two or more parties
Breach of Contract: When one party fails to live up to the terms of a contract.

6. Protecting Creative Properties
Copyright: Gives artists the legal right to own their creations.
Automatically protected from the moment of its creation and is ordinarily given a term enduring for the author’s life plus an additional 70 years after the author’s death
Patent: A legal grant for the sole right to own an invention. Lasts for about 20 years.
Trademark: A name, a symbol, or a characteristic that identifies a product.

7. Regulating the Production Process
FDA: Food and Drug Administration: regulates the manufacture and sale of drugs and foods in the U.S.

8. Homework Type out all definitions for Ch. 11
Complete 11.1 Reading Activity and Graphic Organizer
Review questions on pg. 184, 1-3