1. The Role of Government
Chapter 7 Section 3

2. Anti-Monopoly Legislation
Sherman Antitrust Act
1st law against monopolies
Clayton Antitrust Act
Outlawed some price discrimination from monopolies (charging different prices for the same product)

3. Internalizing Externalities
Tax system to lessen some negative externalities
Example: pollution
Say a firm dumps pollution into a local river so they do not have to pay for toxic disposal
Who pays the price for the pollution?
The public
Gov’t taxes the producer (use the $ to pay for clean up).
Hope that the company will pollute less since they have to pay for the pollution

4. Public Disclosure
Requirement that businesses reveal information to the public
From labels on food to banks and CC explaining interest rates on loans

5. Chapter Review page 205-206 Numbers 1, 2, 4, 7, 15 and 16 EITHER
Write out the question and answer OR
Write your answer in complete sentences