Government's Role in Business and Economy

The video reviews the economic circular flow chart, illustrating interactions between businesses, individuals, and the government using Yoda as an example. It explains how income and taxes affect disposable income and how government uses taxes to provide services. The video also covers how the government promotes competition and regulates businesses through federal agencies like the FTC, FCC, and EPA. Students are instructed to complete a worksheet to practice identifying economic interactions.

What is the primary focus of the economic circular flow chart?

• The interaction between different industries

• The interaction between businesses, individuals, and the government

• The interaction between different countries

• The interaction between different currencies

How much does Yoda save for a new lightsaber each month?

• $20

• $25

• $15

• $10

What is Yoda's disposable income after all expenses and savings?

• $5

• $10

• $20

• $15

How do businesses use the revenue from consumer purchases?

• To invest in foreign markets

• To pay for employees and services

• To donate to charity

• To buy government bonds

What role does the government play in promoting competition?

• By creating monopolies

• By reducing consumer choices

• By breaking up monopolies and supporting small businesses

• By increasing taxes on small businesses

Which act gave the government the power to break up monopolies?

• The Clayton Act

• The Competition Act

• The Federal Trade Act

• The Sherman Antitrust Act

What is one way the government supports small businesses?

• By increasing their taxes

• By providing advice and loans

• By reducing their workforce

• By limiting their market access

What is the role of the Federal Trade Commission (FTC)?

• To manage national parks

• To control pollution

• To investigate unfair business practices

• To regulate TV and radio broadcasting

What does the Federal Communications Commission (FCC) regulate?

• Food safety standards

• Stock market activities

• Environmental policies

• TV and radio broadcasting

What is the primary function of the Environmental Protection Agency (EPA)?

• To regulate financial markets

• To control pollution

• To oversee educational standards

• To manage healthcare policies