Transcript unit 2 - concept 3 - role of the government in the market

Concept #3 – Role of the Government in the
Market
• Lesson Objective Question – Copy in binder
• Why would the government try to influence the market price for goods and
services?
• Vocabulary – Copy and Define in binder
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Market failures
Public goods & services
Externalities
Maintain legal and social system
Maintain competition
Redistribute income
Six Economic Functions of the Government
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Maintaining Legal and Social Framework
Providing Public Goods and Services
Maintaining Competition
Redistributing Income
Correcting for Externalities
Stabilizing the Economy
Maintaining Legal and Social Framework
• Laws
• Establish Monetary System
• Define/Enforce Property Rights
Maintaining Competition
• Create and enforce antitrust laws
• Regulate natural monopolies
Providing Public Goods and Services
• Provide goods and services the market is unable to provide.
Redistributing Income
• Tax Rates
• Social Security
• Aid to Children
Externalities
• Copy and complete in binder
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Describe your favorite part of the video.
Write down 3 Economic things you learned.
Write down 1 question you have about externalities.
Write down 1 question you have about this awesome video.
Define externalities
Correcting for Externalities
(Worksheet)
• Taxes to reduce negative externalities (Pollution).
• Subsidies to encourage positive externalities (Education; Bee
Keepers).
Stabilizing the Economy
• Promote Economic Growth
• Control Inflation
• Reduce Unemployment
In groups of 4 place the correct headline under each category.
1. Federal Government Approves Crime Bill; Cities to Hire Additional Police
2. Minnesota to Sue Tobacco Firms to Recover Health Care Costs
3. Consumer Product Safety Commission Recall of Skirts Made in India
4. US Investigation Seeks to Find if Aluminum Producers Conspired to Cut
Output, Broke Anti-Trust Laws
5. Insurer Files Suit Charging Bank Made False Claims
6. Higher Interest Rates Likely Despite Inflation Data
7. U.S. Government to Increase Aid to Education Next Year
8. Northeast's Petition for Tighter Curbs on Auto Emissions Approved by
Environmental Protection Agency
9. Group of Economists Urges Federal Reserve System Not to Act Against
Inflation Now
10. Hughes Aircraft to Lay Off 4,400 and Close Big Defense Plant
11. Social Security Payments to Increase by 4% Next Year: Cost of Living
Allowance Up
12. Congress Approves Higher Income Tax Rate for Top Wage Earners
The Role of Government in a Market Economy
• Activity #1 – Life of Dismal Lake
• Individually and quietly read Parts I, II and III
• Answer all Discussion Questions on a separate piece of paper in COMPLETE
SENTENCES. USE DETAILS AND EXAMPLES FROM THE READING TO SUPPORT
YOUR RESPONSES.
• Activity #3 – What Role Should the Government Play in the Economy?
• Read the following views. Write a paragraph that states which view you agree
with a why? Conservative or Liberal?
• YOU MUST PICK ONE POSITION
Role of Government DEBATE/DISCUSSION
• Rules for the Debate
• Moderator is in charge at all times
• Go to the side of the room designated for your point of view
• Select group leader, note takers, speakers
• Group Leader – keeps group on task, presents opening and closing arguments
• Note takers – take notes throughout debate from both sides
• Speakers – participate in debate and rebuttal
• Create – opening and closing arguments, at least 2-3 major points to support position,
information to refute opposing side
• Debate –
• Opening arguments (2 minutes per side – 4 minutes total)
• Discussion and Rebuttal (20 minutes total)
• Four 5 minute sessions – 2 minutes to present first major point, 3 minutes for discussion
• Closing arguments (2 minutes per side – 4 minutes total)
• Debate & Timing Expectations –
• Groups cannot go beyond time limit; cannot bank unused time
• Negative, inappropriate behavior/language, arguing will result in points lost for group and debate being
cancelled
• To speak – you must be recognized by moderator, YOU MUST RAISE YOUR HAND!
HOMEWORK
• STUDY FOR QUIZ
• WORK ON NOTEBOOK
Role of the Government in
the Market Quiz
All Quiz Expectations Apply