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STANDARD CE.11a
Competition in the Marketplace |
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How does the United
States government promote and regulate
competition?
Ways the government promotes
marketplace competition:
Enforcing antitrust legislation to discourage
the development of monopolies
Engaging in global trade
Supporting business start-ups
Government
agencies that
regulate business:
FCC (Federal Communications Commission)
EPA (Environmental Protection Agency)
FTC (Federal Trade Commission)
These agencies oversee the way individuals and
companies do business. |
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STANDARD CE.11b
Public Goods and Services |
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What are
public goods and services? Government provides public goods
and services that individuals acting alone could not
provide efficiently.
Characteristics of public goods and
services:
Include such items as
interstate highways, postal service, and
national defense
Provide benefits to many simultaneously
Would not be available if individuals had to
provide them
How do governments produce public
goods and services? Ways
governments produce public goods and services:
Through tax revenue
Through borrowed funds |
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STANDARD CE.11c
Taxation, the 16th Amendment, Spending & Borrowing |
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How does the
government influence economic
activity?
The government taxes, borrows, and
spends to influence economic activity.
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Government tax increases
reduce the funds available for
private and business spending. |
Government tax decreases
increase funds for
private and business spending. |
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Increased government borrowing
reduces funds available for
borrowing by individuals and businesses. |
Decreased
government borrowing
increases funds available for
borrowing by individuals and businesses. |
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Increased government spending
increases demand, which may
increase employment and production; |
Decreased government spending
reduces demand, which may result in a slowing of
the economy. |
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Increased government spending
may result in higher taxes. |
Decreased government spending
may result in lower taxes.
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The 16th Amendment to
the Constitution of the United States of America
authorizes Congress to tax incomes (personal and business). |
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STANDARD CE.11d
The Federal Reserve System
How the Federal Reserve System regulates the money supply. |
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What is the role of the Federal
Reserve System in maintaining a stable economy?
The Federal Reserve System, acting as the central bank,
regulates the money supply.
The Federal Reserve System (Fed) is the central bank
of the United States.
Federal Reserve banks act as a bankers bank by
issuing currency and regulating the amount of money in circulation.
To slow the economy,
the Federal Reserve Bank restricts the money supply,
causing interest rates to rise.
To stimulate the economy
the Fed increases the money supply, causing
interest rates to decline.
Ways the Federal Reserve Bank slows the
economy:
Increases the reserve requirement
Raises the discount
rate
Sells government securities
Ways the Federal Reserve Bank stimulates
the economy
Lowers the reserve requirement
Lowers the discount rate
Purchases government securities |
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STANDARD CE.11e
Consumer and Property Rights |
The student will
demonstrate knowledge of the role of government in the United States economy
by:
e) describing the protection of consumer rights and property rights. |
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What is the role of the United
States government in protecting consumer rights and property rights?
The United States government passes laws and creates
agencies to protect consumer rights and
property rights.
Individuals have the right of private ownership,
which is protected by negotiated contracts that
are enforceable by law.
Government agencies establish guidelines that
protect public health and safety.
Consumers may take legal action against
violations of consumer rights. |