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Chapter Seven, Business and Public Policy

Across
the increase or expansion of government regulation where the regulatory activities had previously been reduced.
Aimed to modify normal operation of free market, oldest regulation.
the marketplace fails to adjust prices for the true costs of a firm’s behavior. For example, a company normally has no incentive to spend money on pollution control equipment if customers do not demand it.
A monopoly in a industry where the largest supplier in said industry has a large advantage over competitors due to high costs and other entry barriers.
Government programs aimed at improving social welfare in such areas as health care and education.
a plan of action undertaken by government officials to achieve some broad purpose affecting a substantial segment of a nation’s citizens.
Prohibits unfair practices in marketplace.
aimed at such important social goals as protecting consumers and the environment and providing workers with safe and healthy working conditions.
Legislation passed in US in 2011 in response of Financial crisis.
refers to patterns of government collecting and spending funds that are intended to stimulate or support the economy.
Removal of regulating activities by the government.
Down
refers to policies that affect the supply, demand, and value of a nation’s currency.
A systematic method of calculating the cost and benefits of a project.
the practice of selling below cost to drive rivals out of business.
is a primary way of accomplishing public policy, as described in the previous section.