11 Flashcards
interstate commerce
business between states
interstate commerce
business between states
intrastate commetce
business within states
levels of gov
federal : oversees interstate commerce, runs countries
state : oversees intrastate commerce, runs states
local : runs counties, townships, cities, towns
these govs pass laws to protect and regulate business
countries economic health depends on
business doing well. govs role is to foster economic success and aid in quality of life of citizens
levels of gov regulate by :
regulating production process
protecting competition
protecting business agreements
protecting creative properties
monopoly vs oligopoly
mono ; when one company controls an industry/ is the only one to sell a product or service
oligo : when a small grp of companies control an industry
monopolies dont compete. this allows them limit choice, to charge any price they want and not care abt quality
trust and antitrust laws
grp of companies that form a monopoly and cut out comp.
antitrust laws : allow the feds to break up monopolies, regulate and take control.
federal trade commission FTC
contract and breach of contract
legally enforceable agreement between two or more parties. can be written, spoken, or handshaken
breach : one party fails to live up to the terms of the contract. easier to prove if its written
copyright vs patent vs trademark
copyright : gives artists legal right to their own creations. photographs, paintings, music, books, plays, etc. lasts 70 years after death of owner
patent : legal grant for the sole right to own an invention. lasts 20 years after application
trademark : name, symbol, or characteristic that identified a product. Registered by the gov
regulating production
gov tries to stop companies from pollution
amt of waste factories can put into the environment
safety requirements and work procedures
regulate min wage
worker protection
govs role in society
providing goods and services
govs provide public services for the good of society.
pub services : items provided by gov and
paid for by tax. highways, bridges, national defense, water treatment plans
private services : items consumers purchase directly from businesses
other services promote social welfare that improves quality of life. ex gov provides libraries, parks, museums, pools
aiding citizens thru transfer payment
trans pay : gov expense provided to help ppl. ensures ppl have money when they need it. ex social security, unemployment, veterans benefits
providing employment
fed state and local govs employ millions.
consuming goods and services
gov buys school supplies, furniture, comps, aircraft, weapons to maintain military, food. gov must buy directly from businesses or have it specially made. it also hires businesses to build schoolhouses, roads, aircraft, etc,
supporting businesses
gov also supports small businesses by offering loans or advice w the SBA small busi admin
tax
amt of money ppl and businesses pay governments to help run the nation, city, state, or town.
each level of gov collects tax for diff kinds of services.
taxes are included in purchase prices, income revenue, etc.
purpose is to pay for public goods and services by spreading the costs among many.
tax incentive
temp elimination or reduction of a tax that is meant to discourage an activity.
tax break : special tax benefit given to promote specific economic or social objectives like home ownership and less smoking
how gov allocates resources
by deciding the best ways to spend tax revenues. they determine which projects are priorities for funding. gov spending affects the distribution of income (ppl w transfer payments like unemployment can see their income rise or fall if the gov raises or lowers the amt of their payments)
revenue
income govs get from all sources like taxes and money coming from sale of goods and services
privatization
when business offers pub good or service. gov body that pays for it oversees the business. ex cafes in gov buildings
subsidies
monetary grants given to producers or consumers to encourage certain behaviors. usually given to firms that benefit the public.
gov is the largest
provider of services
employer
consumer
