Government's Intentions
Why did the government regulate the food and drink industry?
Which government organization is responsible for transportation?
Department of Transportation (DOT)
Why would the government use price controls?
How do taxes/fees help the government?
Provide the government with funding for regulations.
Why is regulation important to product safety?
It ensures that products are made with quality parts/ingredients.
Why does the government regulate things today?
Which major U.S. history event led to increased regulation?
The great depression
What is a price floor?
A price floor is the minimum price for a good/service
What is an example of a fee a business might have to pay?
Safety inspections
How does government regulation benefit employees?
Protects them from unfair treatment.
What is the role of the Federal trade commission (FTC)?
Protects consumer rights and promotes competition.
How did the government's involvement change during the industrial revolution?
They increased involvement to address unsafe working conditions.
What is a price ceiling?
A price ceiling is a limit for the cost of a good/service
Why is licensing important for healthcare?
Protects patients and ensures that only trained professionals are working in the field.
How does the government fund its regulatory activities?
Taxes and fees paid by businesses.
Why did the government regulate the banking industry?
To prevent fraud and protect savings
How has the government's role in business changed over time?
The government has increased their regulation and involvement over time.
What are price controls and why are they important?
Because they limit the prices for goods and services, preventing inflation.
How does the government make sure that businesses are up to date on their licensing?
Inspections and record keepings
What is one positive effect of government regulation on businesses?
Protect consumers from unsafe products.
What was the original reason the government began regulating businesses?
What is to protect consumers and ensure fair business practices.
One main purpose of government involvement
Ensure fair competition
What are the two main ways governments regulate business?
Licensing and price/wage controls
Why is licensing important?
It ensures that businesses are following guidelines and regulations that impact the quality of their good/service.
What is one negative effect of government regulation?
Increases business costs and makes it difficult for new company's.