Business and Government #3
Today I will: Take notes and be fascinated!
So I can: Explain how government, by establishing laws and
regulations, can improve operation of the private sector
I will know I’m successful when: Distinguish between
regulations that provide competition and those that control
natural monopolies
What is your favorite possession? Write it down.
How would you feel if someone tried to take it from you?
What would you expect the government to do?
Governments establish legal right to
ownership, safe-guarding private
property rights
Private Property Rights – guarantees individuals the right to use
their resources as they choose or charge others for the use
Everything you buy is someone else’s private property
Once you buy it, it becomes your private property
This concept is at the heart of an economy and its ability to function
Therefore, the government’s role is vital
Intellectual Property Rights – property rights to creators of new
ideas or inventions
Three types of
intellectual
property
Patent – for inventions or technical advances
Copyright – for original expressions of an author,
artist, composer or computer programmer
Trademark - for unique symbols and commercial
marks
Monopolies and Competition
Discussion Point – You own your own company
Do you want competition?
How does the government ensure a level playing field?
Anti-trust Laws – laws that prohibit anti-competitive behavior and
promote competition in markets where competition is desirable.
Name the only business in the USA with an anti-trust exemption
Natural Monopolies – one firm can serve the entire market at a
lower per unit cost than two or more firms
Examples?
Public Utilities – regulated by the government
Public Transit – operated by the government
Government Regulation
 Easier to administer and efficient with monopolies
 Difficult to administer & inefficient in competitive industries
Assignment
1) Look anywhere around the room or think about Kentwood in
general and look for evidence of government regulation. Find as
many examples as possible and record them. Can you find any?
Who can find the most?
2) Write down a rule here at Kentwood that you
A) like
B) don’t like