1. Market Systems and Government
By: Ben Quick

2. The Role of Government Provide public goods and services
Redistribute income
Protect property rights
Resolve market failures
Regulator

3. 1. Provide Public Goods and Services
- Roads
- Schools
- Nuclear Weapons
Services
- Public Safety
- Medicare
- Social Security

4. 2. Redistribute Income
Through taxing and spending policies the government can move money from one individual to another.
Welfare, Medicare, and Medicaid are the most obvious examples

5. 3. Protect Property Rights
Enforce contracts and private ownership of the factors of production
Enforce laws that make sure the economy is efficient and fair

6. 4. Resolve Market Failures
Protect against big business and monopoly advantage
Ensure fair competition and consumer choice

7. 5. Regulator
The government regulates business to protect citizens against harm/fraud
Examples:
- Banking – protects against bank failures (FDIC)
- Auto Industry - safety

8. 5. Regulator (Cont.)
Regulation and deregulation (removing existing regulations) have different effects on producers and consumers
Regulation increases the cost of producing goods/services, but provides consumers with protection
Deregulation cuts the costs for the producers, but reduces the protection of the consumer

9. 5. Regulator (cont.) Examples - Food and Drug Administration
- Environmental Protection Agency
- Bank Regulations
- Federal Aviation Administration

10. Questions?