How does government encourage

or increase competition among

businesses?

What is the goal of the game

Monopoly?

Monopoly
A monopoly is the sole provider of a good or
service.
In a market, multiple businesses compete with
multiple consumers to set the market price.
With a monopoly, consumers suffer because
they are forced to pay whatever price the
monopoly sets. They dont have the option to
shop somewhere else.
One of the goals of the U.S. government is to
encourage fair competition in the market place.

Antitrust Laws
A trust is a group of businesses that
threaten competition.

Antitrust Laws
In 1890, the Sherman Antitrust Act
banned businesses that prevented
competition.
In 1911 the government broke up the
Standard Oil Company.
In 1914 the Clayton Antitrust Act
expanded the law to include unfair
business practices. (i.e. a person
cannot be on the board of directors
for two competing companies)

Mergers
A merger is where two or more
companies combine to form a single
business. This may violate antitrust
laws, and could be blocked by the
government
The Federal Trade Commission (FTC)
enforces these laws.

Natural Monopolies
Sometimes it is cheaper and easier to
let one company produce a good or
service (i.e. building power lines for
an expanding city). Government may
allow this, but will regulate price
changes and other business
practices. Sometimes governments
take over these natural monopolies
and run them themselves (i.e. basic
services like water and sewer).

Natural Monopolies
When government decides to end
natural monopolies, it is called
deregulation.

How does government regulate

business?
The U.S. government has set many
business regulations in place to
protect employees' rights, protect
the environment and hold
corporations accountable for the
amount of power they have in this
business-driven society. Some of
these regulations stand out more
significantly than the others because
of their relevance to every U.S.

Advertising
Laws pertaining to marketing and
advertising set in motion by the
Federal Trade Commission (FTC) exist
to protect consumers and keep
companies honest about their
products. Every business in the
country is required to comply with
the truth-in-advertising laws and
could face lawsuits for violation.

Advertising
Truth-in-advertising laws are made up of
dozens of tidbits under three main
requirements:
- advertising in the United States must be
truthful and non-misleading;
- businesses need to be able to back up
claims made in advertisements at any
time;
- and advertisements must be fair to
competitors and consumers.

Advertising
Additionally, in compliance with the
Fair Packaging and Labeling Act of
1966, all product labels must include
information about the product, such
as nutrition, size, and distribution
and manufacturing information.

Employment and Labor

Among the ever-changing regulations
in business are employment laws.
These laws pertain to minimum
wages, benefits, safety and health
compliance, work for non-U.S.
citizens, working conditions, equal
opportunity employment, and
privacy regulations--and cover the
largest area of subjects of all the
business regulations.

Employment and Labor

The Fair Labor Standards Act, applied
by the Wage and Hour Division, set
the minimum wage for workers in the
United States. There are also several
required benefits, including
unemployment insurance, Workers'
Compensation Insurance and
employee Social Security assistance.

Employment and Labor

The Immigration and Nationality Act
works to ensure that only U.S.
citizens and individuals with work
visas can be hired, and every
business must keep on file I-9
eligibility forms for applicable
employees.

Environmental
The Environmental Protection Agency
(EPA) enforces environmental laws
passed by the federal government
through educational resources,
frequent inspections and local
agency accountability. The
Environmental Compliance
Assistance Guide exists to help
businesses--small and large alike-achieve environmental compliance,

Privacy
Sensitive information is usually
collected from employees and
customers during hiring and business
transactions, and privacy laws prevent
businesses from disclosing this
information freely. Information
collected can include social security
number, address, name, health
conditions, credit card and bank
numbers and personal history.

Privacy
Not only do various laws exist to keep
businesses from spreading this
information, but people can sue
companies for disclosing sensitive
information.

Safety and Health

The Safety and Health Act of 1970 ensures that
employers provide safe and sanitary work
environments through frequent inspections and
a grading scale. A company must meet specific
standards in order to stay in business. These
regulations have changed frequently throughout
the years alongside the changing sanitary and
workplace standards. In accordance with the
1970 act, employers must provide hazard-free
workplaces, avoiding employee physical harm
and death, through a number of procedures.

Organizations that Protect the

Health and Safety of the Public
The Food and Drug Administration
(FDA) ensures that food and drugs
that people buy are safe for
consumption.

Organizations that Protect the

Health and Safety of the Public
The Center for Disease Control (CDC)
works to reduce the spread of
diseases.

Organizations that Protect the

Health and Safety of the Public
The Consumer Product Safety
Commission (CPSC) protects
consumers from injury. If they feel a
product is unsafe, they may recall
the item.

Organizations that Protect the

Health and Safety of the Public
The Occupational Safety and Health
Administration (OSHA) sets strict
guidelines that businesses must
follow to keep their employees safe.

Regulating private business can be

difficult because it can cost business
a lot of money. For example, if
something is recalled, a business
must pay to remove or fix all the
items in circulation, or complying
with safety regulations can be costly.