What do you think?
Do you strongly agree, somewhat agree, somewhat
disagree, or strongly disagree with each statement?
The government should increase taxes
to expand programs for the elderly.
The government should ease up on
regulations protecting the environment.
The government should break up
1) Protecting Property
Encourages people to…
Take care of their property
Make the most productive use of their
Develop their property in ways that benefit others
Article 1 of the U.S. Constitution
4) Protecting Workers
The Department of
Safety and Health
physical well being.
5) Addressing Externalities
Externality: A side effect of production or consumption that
has consequences for people other than the producer or
6) Providing Public
Most goods and services
produced in market economies
are private. The consumers who
purchase these goods consume
Ex: Hamburger, shoes
Public goods are used
collectively and no one can be
excluded from using them.
Ex: National defense, public parks
Public good have 2 characteristics:
Once a public good is produced, it is difficult or
impossible to exclude others from consuming the
good, even if they didn’t pay for it.
When one person consumes a public good,
it does not prevent others from also
consuming the good.
THERE IS NO WAY TO MAKE PEOPLE
WHO BENEFIT FROM PUBLIC GOODS PAY
Because of this, private businesses do not
have incentives to produce enough public
Therefore, the government often
provides them, through tax dollars, if
people want them.
What might happening does
the interesting details in this Why?
What rolethreecartoonist be saying about how well the
What areisof governmentsample restaurant? cartoon?
Complete the row for the in thisthis cartoon Handout 11.
placard on represent?
government is carrying out its role in this case?
Circulate around the room to analyze the placards.
At each placard, complete the appropriate row on Handout 11.
Trans fats are fats in food that contribute to high cholesterol. Some local
governments have banned, or attempted to ban, trans fats in restaurant foods.