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Section 3.2 Government and Consumer Functions
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The roles government plays in our free enterprise system The supply and demand theory
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The government plays four roles in our free enterprise system. 1. Provider of Services 2. Supporter of Business 3. Regulator ▪ Consumer and Worker Protection ▪ Business Protection 4. Competitor ▪ Examples: Tennessee Valley Authority (TVA), U.S. Postal Service, Amtrak
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Deciding Which Businesses Survive ▪ The U.S. is known as a consumer-oriented society. ▪ Consumers have the power to decide which products will be produced and which companies will stay in business. Determining Prices Supply and Demand Theory ▪ Surpluses ▪ Shortages ▪ Equilibrium
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