1. There is a trade-off between economic freedom and government protection. Why must such a trade-off exist?
List four goals of government intervention:
Test Chapter 2 and 3 on Thursday

2. Preserving Economic Freedoms
In this lesson, students will identify characteristics of the U.S.A.’s Free Enterprise System.
Students will be able to define and/or identify the following terms:
Free Enterprise
Public Policy
Public Disclosure Laws
Occupational Safety and Health Administration
Environmental Protection Agency

3. The government insists that warning
labels are placed on potentially
dangerous products. Companies
don’t always want consumers to know.

4. Our Free Enterprise system is mostly a
free market economy. However, the
government acts like a lifeguard and
intervenes in the economy when necessary.

5. Why does the Government sometimes need to intervene in the economy?
There are many reasons why the government intervenes in the economy.
Some reasons for government intervention are:
To inform consumers about products
To protect the environment
To prevent the sale of dangerous goods
To protect workers

6. The government does not allow the
sale of dangerous products like
illegal drugs. The government protects
the public.

7. Public Policy
The public interest is the concerns of the public as a whole.
A safer car is in the public interest.
Public policy is laws and standards on topics of public interest.
Requiring car manufacturers to install seatbelts is an example of public policy.

8. The government also requires
companies to provide full
information about their products.

9. Public Disclosure Laws
Public disclosure laws are laws requiring companies to provide full information about their products.
Public disclosure laws exist to ensure that consumers are knowledgeable about the products they purchase.
An informed consumer is a protected consumer.

10. We cannot merely look at a product and
know how much fat or cholesterol it
contains.

11. Workers also need the government’s
protection. What prevents business
owners from exploiting its workers?

12. Occupational Safety and Health Administration (OSHA)
OSHA is a government agency that issues regulations on workplace safety.
OSHA conducts workplace inspections.
OSHA requires public disclosure of hazards to workers.

13. What prevents companies from dumping harmful chemicals in our rivers?

14. Environmental Protection Agency
The EPA is a watchdog agency that aggressively targets polluting industries by imposing regulations, cleanup requirements, and penalties.
The EPA protects the environment and ensures that companies do not harm the environment.

15. Questions for Reflection:
Define Free Enterprise.
Why does the United States have a Free Enterprise system?
Provide an example of Public Policy.
Why do Public Disclosure Laws exist?
How does the EPA benefit society?
How does OSHA benefit workers?