12.8 Government Influence in the Economy

Draw

Looking carefully at this list of responsibilities, which ones do you think the government should be providing or a private company should be providing?

Remember: This is totally your opinion!

Multiple Choice

What is a market failure?

• A situation where the free market does not allocate goods and services efficiently

• A situation where the government controls all businesses

• A situation where only private companies provide services

• A situation where there is no competition in the market

Multiple Select

Which of the following are examples of the government correcting market failures? (Choose the 2 correct answers)

• selling federal land to an oil company

• outlawing the use of a toxic material in toys

• setting rules limiting how much a factory can pollute

• making a loan to a struggling business

Multiple Choice

Why does the government fight against monopolies?

• To protect large businesses from failing

• To increase corporate tax revenue

• To prevent unreasonably high prices and support market competition

• To reduce the number of companies in the market

Fill in the Blanks

The government uses

to help redistribute wealth through different income levels.

Multiple Choice

Which of the following best describes the concept of 'laissez-faire' in economic policy?

• The government should stay out of the economy.

• The government should regulate all businesses.

• The government should control prices.

• The government should provide all goods and services.

Multiple Choice

Which of the following is NOT a function of the government in the economy?

• Establish and enforce private property rights

• Deal with external costs and benefits

• Promote economic security

• Increase private monopolies

Open Ended

Summarize one way the government can intervene in economic activity to address market failures, based on what you learned in this lesson.

​Coming Up:

​Tomorrow: Flex Day

Friday: Live Classroom- Assessment of Civics Knowledge Review

Monday: Assessment of Civics Knowledge

***Next Week: I am off Tuesday 5/19; Wednesday 5/20 and Thursday 5/21 I am proctoring Keystones- no synchronous class on those days. I will post video recordings.