Government Intentions
What was the original intention behind the government's involvement in business?
To create stability, promote fair competition, and protect consumers.
How has the government's role in business changed over time?
It expanded from little involvement to active regulation and intervention
Name two main ways the government regulates business
Licensing and price/wage controls
What is licensing in government regulation?
A permit allowing businesses to operate legally
What are the main positive effects of government regulation on businesses?
It protects consumers and ensures fair competition.
Why did the government originally support businesses?
To promote economic growth and ensure fair competition
What event caused the government to increase its role in business
The Great Depression
What does licensing achieve in business regulation
Ensures standards of quality and safety for public welfare
Why are wage controls important
What are the main negative effects of government regulation?
Increases business costs and reduces efficiency and innovation
How did early government-business relationships prioritize the consumers?
Protected public interests with rules and oversight
Why did the government shift to regulating industires more heavily?
To address monopolies, labor rights, and environmental concerns
Why are price controls important in the economy
How might restaurants be affected by licensing laws?
They would need health permits to operate.
How does the government pay for the cost of regulating business?
Through taxpayer funding and regulatory fees