Category 1
What is a fiscal policy used for?
Fiscal policy is used to set levels of govern-
ment spending and taxation.
What does a monetary policy do?
The monetary policy determines the amount of money that will be in circulation and the level of interest rates.
The less disposable income consumers have,
the ______ they can spend on consumer goods.
The less disposable income consumers have,
the LESS they can spend on consumer goods.
The government tells businesses the maximum amounts they can pay workers and/or charge for their products.
Wage/ Price Controls
Is the process of issuing a permit allowing an individual or a business to function in the marketplace.
Licensing
What were the original intentions of government’s involvement with business?
The basic role of government in business would be as a referee only.
Part of the economy that is owned and controlled by individuals or businesses.
Private Sector
A ___________ exists when a single business influences the entire production of a particular good or service.
monopoly
Sometimes, it is best to have a single provider of a product. This is called a......
Natural Monopoly
What day of the week does Mrs. Lear usually put grades in?
Monday
What are the two main ways that government regulates business?
Government passes laws and establishes agen-cies to regulate businesses. It also regulates business through licensing procedures and wage/price controls.
Explain licensing.
Licensing is the process of issuing a permit allowing an individual or a business to function in the marketplace.
Explain price/wage controls.
The government occasionally regulates businesses by using wage and price controls to set ceilings on wages and prices.
How does government pay the costs of regulating business?
Government has two main sources of revenue to pay the costs of regulation. Government receives money from businesses and individuals in the form of different kinds of taxes. When this is not sufficient, the government borrows money.
Why did government’s role in business change over time?
As the country grew and business expanded, government’s role in business was forced to grow as well. Each area of government involvement had to be expanded, and new areas of responsibility were added. Government’s role now includes not only passing laws that affect business but also enforcing those laws.
What grade is required to pass this class?
70%
What are tariffs?
Extra taxes on imported products.
What are public goods?
Goods and services that we all use.
What is the Public Sector?
That part of the economy that is owned and operated by government at all levels.
What is the monetary policy?
Determines the amount of money that will be in circulation and the level of interest rates.
What is Mrs. Lear's maiden name? (Last name before she got married?)
Hint: It has always been on your schedule.
Gathings
Food prices sometimes fall because of overproduction by farmers. When this happens, government _________ allow farmers to make enough money from selling their products to pay their costs.
Price Supports
What are some negative effects of government regulation of businesses?
- Expense and inefficiency
- Businesses may need large numbers of employees just to handle government requirements.
-Some businesses become so involved in meeting government requirements that they do not operate efficiently.
When prices go up, wages and profits usually go up, too. This means _______ tax money paid to government. When prices go down, wages and profits generally decline, also. This means ______ tax money to support government expenses.
More; Less
What are some positive effects of government regulation of business?
- Businesses are protected by government regulation from the unfair competitive practices of other businesses.
- Gives all businesses fair access to those resources. - Legal protection for a company’s products.
- Provides businesses with specific rules to follow in their dealings with consumers.