Standard 4

Economic Project

How does the United States Government..

Promote and secure competition in a market economy?

Competition promotes discipline within an individual. Competition allows for an economy in which the people can choose what they want and what price they are willing to pay for it. Businesses in competition are most likely to raise or lower their prices which can benefit the consumer. Antitrust laws are used to help promote a more competitive economy. These laws help to enforce more vigorous competition while also protecting consumers.

Protect private property rights in a market economy?

Justice and utility are the two main defenses in private property rights. Justice treats property as a right that can not be denied even if property is not being used. Being able to own property is an inherent right. The government must encourage widespread ownership of property and must protect private property owners from other citizens and the government itself. However, the government has a right to reposes any type of property if it is not causing harm to a community or isn't being paid for in a timely manner.

Promote equity in a market economy?

Promoting equity will indirectly reduce poverty. Equity-enhancing policies can boost economic growth which has been shown to lessen poverty. There is no protection for people who choose to not support themselves economically.

Provide public goods and services in a market economy?

The government provides things to the public through compulsory tax which is a tax collected by employers to fund specific programs. Goods such as national defense, national forests and parks, interstate highways, and waterways are funded through a compulsory tax. The government manages the amount of money in the economy to try and keep inflation down. Government provides certain goods and service that regular businesses can not provide.

Resolve externalitites and other market failures in a market economy?

Externalities occur when one person's actions affect another person's well-being and the relevant costs and benefits are not reflected in market place. The Environmental Protection Agency (EPA) was formed in 1970 to provide public-sector solutions to the problems of externalities in the environment.

Stabilize and promote growth in a market economy?

There are four major goals of economic policy: stable markets, economic prosperity, business development and protecting employment Government can provide a stable environment for economic growth when it can be depended upon to maintain the stability of the currency, enforce and defend property rights, and provide oversight that assures private citizens that their transaction partners in the marketplace are held accountable.

Use regulations and deregulation policies to affect consumers and producers in a market economy?

Deregulation refers to the deletion, abandonment, or relaxation of various laws, rules, and regulations that affect business and industry. The regulation of business and industry by government is for the purposes of consumer protection and or the enhancement of business competition. Regulation is generally thought to also protect minorities, employees, investors, and the environment.