1. © SOUTH-WESTERNCONTEMPORARY ECONOMICS: LESSON 3.21 LESSON 3.2 Regulating the Private Sector  Explain how government, by establishing laws and regulations, can improve operation of the private sector.  Distinguish between regulations that promote competition and those that control natural monopolies.  Describe how fiscal policy and monetary policy reduce the ups and down of the business cycle. Objectives

2. © SOUTH-WESTERNCONTEMPORARY ECONOMICS: LESSON 3.22 LESSON 3.2 Regulating the Private Sector  private property rights  antitrust laws  natural monopoly  fiscal policy  monetary policy Key Terms

3. © SOUTH-WESTERNCONTEMPORARY ECONOMICS: LESSON 3.23 Rules for a Market Economy  Establish property rights  Intellectual property rights  Measurement and safety

4. © SOUTH-WESTERNCONTEMPORARY ECONOMICS: LESSON 3.24 Private Property Rights  Private property rights guarantee individuals the right to use their resources as they choose or to charge others for the use.

5. © SOUTH-WESTERNCONTEMPORARY ECONOMICS: LESSON 3.25 Intellectual Property Rights  Patent  Copyright  Trademark

6. © SOUTH-WESTERNCONTEMPORARY ECONOMICS: LESSON 3.26 Measurement and Safety  U.S. Bureau of Weights and Measures  The U.S. Food and Drug Administration (FDA)  The U.S. Department of Agriculture  The Consumer Product Safety Commission

7. © SOUTH-WESTERNCONTEMPORARY ECONOMICS: LESSON 3.27 Market Competition and Natural Monopolies  Promoting market competition  Antitrust laws attempt to promote competition and reduce anticompetitive behavior.  Regulating natural monopolies  When it is cheaper for one firm to serve the market than for two or more firms to do so, that firm is called a natural monopoly.

8. © SOUTH-WESTERNCONTEMPORARY ECONOMICS: LESSON 3.28 Growth and Stability of the U.S. Economy  Fiscal policy uses taxing and public spending to influence national economic variables.  Monetary policy tries to supply the appropriate amount of money to help stabilize the business cycle and promote healthy economic growth.