1. Ch. 11 The Role of Government in Our Economy
11.2
Government as Provider

2. Government’s Role in Society
Largest provider of goods and services
Provides goods and services for the good of society, not to make a profit
Public goods and services are items provided by the government and paid for using tax money
Private goods and services are items that consumers purchase directly from businesses
Revenue: The income that governments get from all sources. It is also money that comes into a business from the sale of goods and services.

3. Government’s Role in Society
Privatization: When a business offers a public good or service
Transfer payments: A government expense that is provided to help people out. Ex. Social Security, Unemployment, Welfare
More than 3 million people work for the federal government
Federal Government is also the largest consumer of goods and services
Subsidies: Monetary grants given to producers or consumers to encourage certain behaviors

4. Small Business Administration
The U.S. Small Business Administration (SBA) was created in 1953 as an independent agency of the federal government to aid, counsel, assist and protect the interests of small business concerns, to preserve free competitive enterprise and to maintain and strengthen the overall economy of our nation. We recognize that small business is critical to our economic recovery and strength, to building America's future, and to helping the United States compete in today's global marketplace. Although SBA has grown and evolved in the years since it was established in 1953, the bottom line mission remains the same. The SBA helps Americans start, build and grow businesses.

5. How Government is Funded
Tax: An amount of money people and businesses pay governments to help run the nation, state, county, city, or town.
Tax Incentive: A temporary reduction or elimination of a tax that is meant to encourage or discourage an activity.

6. How Government Allocates Resources
Governments allocate resources by deciding the best way to spend tax revenues.
Prioritizing tax dollars.

7. Homework Complete 11.2 Reading Activity and Graphic Organizer
Review questions on pg. 189, 1-3
Homework due Friday
Quiz Friday