Positive effects of government regulation on business
What is the government's main goal now in businesses?
The government’s goal is to keep the country safe and have a stable environment and businesses want to make as much profit as possible.
Does the government affect the operations of businesses?
What were the original intentions of the government on businesses?
Originally their only job would be to be a referee and protect consumers from scams
What is licensing?
Licensing is issuing a permit allowing a individual or business to function in the marketplace.
Why are the laws and regulations for businesses sometimes outdated?
Business is always changing so old laws need to be revised and new laws need to be created.
What is the government trying to promote when they ban or regulate monopolies which is when a single business influences the entire production of a particular good or service?
free competition
Used to set levels of government spending and taxation
Fiscal Policy
What are wages or price controls?
Wage or price controls is when the government occasionally regulated businesses by using wage and price controls to set a max on wages and prices
Why does the government regulate businesses that produce food drugs and cosmetics?
To protect public health
What determines the amount of money in circulation and the level of interest rates?
Monetary Policy
Why is price and wage controls important?
Are you allowed to advertise whatever you want as a business?
No, they prohibit false advertising and deceptive labeling.
Why is licensing important?
It ensures that your company is successful and profitable in the marketplace but also protects consumers.
How do government regulations effect small businesses?
The high cost of paying the regulations.
borrowing money or taxes