Introduction to Business

[Audio] Chapter 11 The Role of Government in Our Economy Section 11.1 Government as Regulator.

[Audio] The Main Idea Our government's role is to foster success in the economy. One way it does that is by creating rules and regulations that organizations and consumers must follow. Laws cover three aspects of the economy. They protect competition. They protect business agreements and creative properties. They are also used to regulate the production process..

[Audio] How Government Regulates Business The government is responsible for fostering economic success and protecting people by regulating businesses..

[Audio] Graphic Organizer Three Levels of Government Federal Government State Government Local Government Country State Counties Townships Cities Towns.

[Audio] How Government Regulates Business interstate commerce business that takes place between states The federal government oversees interstate commerce..

[Audio] How Government Regulates Business The state government oversees intrastate commerce. intrastate commerce business that takes place within states.

[Audio] Protecting Competition When a monopoly or an oligopoly occurs, consumer choice is limited. monopoly when a company controls an industry or is he only one to offer a product or service oligopoly when a small number of companies control an industry.

[Audio] Monopoly, the Board Game Lizzie Magie, a young Quaker woman from Virginia, created a game that became Monopoly® in 1903. It was developed as a way to teach people about the monopoly of land ownership..

[Audio] Protecting Competition Companies can form a monopoly by establishing a trust. trust a group of companies that band together to form a monopoly and cut out competition.

[Audio] Protecting Competition antitrust laws laws that allow the federal government to break up monopolies The U.S. government formed the Federal Trade Commission (FTC) to enforce antitrust laws and regulate interstate trade..

[Audio] Protecting Business Agreements contract a legally enforceable agreement between two or more parties A contract can be written, verbal, or formed over a handshake..

[Audio] Protecting Business Agreements breach of contract when one party fails to live up to the terms of a contract It is easier to prove a breach of contract occurred if there is a written contract..

[Audio] Protecting Creative Properties copyright the legal right of artists to own their creations A person creating an original work automatically holds the copyright to it, which lasts until 70 years after the owner's death..

[Audio] Protecting Creative Properties patent a legal grant for the sole right to own an invention A patent lasts for 20 years after the inventor filed his or her application with the U.S. Patent and Trademark Office..

[Audio] Protecting Creative Properties trademark a name, symbol, or characteristic that identifies a product A trademark is protected from being copied if it is registered appropriately..

[Audio] Regulating the Production Process The government regulates the production process by passing laws that protect the environment and workers..

[Audio] Regulating the Production Process The Food and Drug Administration (FDA) regulates the manufacture and sale of drugs in the United States..