1. Chapter 16 Government’s Role in Our Economy

2. Section 1: Government Intervention in the Economy
*Key Concept*
The govt. makes rules to make sure businesses treat their competitors, employees, and customers ethically.
Ex: Environmental Protection Agency (EPA)
Regulates businesses to protect citizen’s health and the environment

3. What can governments do to correct / prevent economic problems?
Pass laws that set rules for businesses
Give $ to people who need help
Ex: Food, shelter, medical care
Give $ to help important private businesses
Ex: Farmers, Airlines
Control govt. spending and the amount of taxes collected

4. Section 2: Govt’s Efforts to Solve Economic Problems
Ensuring Fair Business Practices
Regulates Monopoly Power
Ex: Electric Company = Public Utility
Bans False Advertising
Ex: “If you eat this food, you will live to be 200!”
Protecting Workers and Consumers
Laws to provide safe working conditions and safe products

5. Providing Economic Security
Social Security: $ for when a person retires, gets hurt, or dies
Public Assistance: $ and services for the poor
Maintaining Economic Stability
Monetary Policy
Regulation of the money supply
Fiscal Policy
Decisions for govt. spending and tax collection

6. Section 3: Managing the Economy
*Key Concepts*
The federal govt. manages the economy by keeping track of how well it is doing and then making adjustments to help.
The govt. also decides how much $ to collect in taxes and fees and then how to spend that $.

7. Ch. 16 Discussion Questions
What role does government play in our economy?
In what ways does the govt. try to fix economic problems?
Do you think the govt. of the U.S. is too involved, not involved enough, or just the right amount of involved in our economy? Can you explain your answer?

8. Ch. 16 Assessment Page 452 Complete # 1 – 12 Reviewing Key Terms
Write out the sentence with correct term underlined.
Comprehension and Critical Thinking
Write out the question and your response.
* Turn in for a grade when completed..