Lesson 1.9 Role of GovernmentSSEF5 A. EXPLAIN WHY GOVERNMENT PROVIDES PUBLIC GOODS AND SERVICES, REDISTRIBUTES INCOME, PROTECTS PROPERTY RIGHTS, AND RESOLVES MARKET FAILURES. SSEF5 B. GIVE EXAMPLES OF GOVERNMENT REGULATION AND DEREGULATION AND THEIR EFFECTS ON CONSUMERS AND PRODUCERS.

First for a quick review

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Follow along the short lecture

Governments and public goods

Frist consider the Essential Question Essential Questions: What effect does Government control over

resources have on producers and consumers?

What does this mean? Government provides public goods…at all levels of government!!

Lets take a look….

Look at chart and read along

A recap of public goods

And the difference between public and private goods

Lesson 1.10 ProductivitySSEF6 A. DEFINE PRODUCTIVITY AS THE RELATIONSHIP OF INPUTS TO OUTPUTS.

Essential Question: How can an individual, company, or nation increase productivity and achieve economic growth?

Economic Growth Profit acts as an incentive for producers. They increase their profits

by increasing

Productivity. Productivity is the efficient use or resources (Inputs and Outputs) to

maximize profits and achieve economic growth. If a business/individual wants to become productive, then they must

increase their Outputs(products/services) while decreasing their Inputs (the factors of production).

Essential Question: How can an individual, company, or nation increase productivity and achieve economic growth?

Investments T he most common way to increase productivity and achieve

economic growth is to invest in

Capital Investments. This can include investment of money and resources in... New machines and equipment. Research and implement new technologies. Improve education of workforce.

Essential Question: How can an individual, company, or nation increase productivity and achieve economic growth?

Investing in Labor Investing in increasing the skills of employees can help increase

productivity. Educated employees often enjoy a better standard of living than uneducated employees.

How will Capital Investments affect the PPC? Increased productivity can shift the production outward, increasing

what that business can produce.

Inputs and Outputs

Now lets summarize

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Lesson 1.11 Business DecisionsSSEF6 B. GIVE ILLUSTRATIONS OF INVESTMENT IN EQUIPMENT AND TECHNOLOGY AND EXPLAIN THEIR RELATIONSHIP TO ECONOMIC GROWTH. SSEF6 C. GIVE EXAMPLES OF HOW INVESTMENT IN EDUCATION CAN LEAD TO A HIGHER STANDARD OF LIVING.

Some bad ones!!!

How to make the right one?

What is a Conglomerate? Why can they withstand harsh economic times better than other companies?

Mergers To help increase profits, companies can merge with another company

to form a new entity.

Vertical Merger - Companies of different types merge together. (Example: GM buys Bridgestone Tires)

Horizontal Merger - Companies that make similar things join. (Example: Exxon buying Mobil to become ExxonMobil)

Types of Mergers

What is a Conglomerate? Why can they withstand harsh economic times better than other companies?

Conglomerates This is when a company produces different products under different

companies it owns. Allows the main company to become extremely strong against

market collapses.

Why would a Conglomerate be safe from bad economic times?

What is a Conglomerate? Why can they withstand harsh economic times better than other companies?

Multinational Companies can grow so large that they establish production facilities in

multiple countries. Good:

Spread technology Create new jobs where they go Pay lots of taxes

Bad: Exploitation of workers Remove jobs from where they left Can become political