Article I, Section 8 of the Constitution of the
United States gives Congress the power to make all laws
which are “necessary and proper” to carry out its duties.
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 Provides protection
 Regulates our economy
 Assists business
 Produces goods and services and hires
workers
 Raises money
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The Federal Government oversees the
activities that involve 2 or more states or
other countries
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Business transactions involving companies in more than
one state are called interstate commerce
Business activities within one state’s borders are called
intrastate commerce
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•Police and fire-fighting services
•Armed forces
•OSHA – Occupational Safety & Health Administration
•Equal Opportunity Employer
•EPA – Environmental Protection Agency
•Contracts and property rights
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• Police - A body sanctioned by local, state,
or national government to enforce laws
and apprehend those who break them.
• Fire Department - the department of local
government responsible for preventing and
extinguishing fires
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• (Military) the military forces of a nation or
nations, including the army, navy, air force,
marines, etc. paid for through the defense
budget, which is funded through the
government.
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• OSHA was created by the U.S. Congress in
1971 to develop and enforce workplace
safety and health rules throughout the
country.
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• Equal employment opportunity means that
all individuals must be treated equally in
the hiring process, in training, and in
promotion.
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• an agency of the federal government of the
United States charged with protecting
human health and the environment, by
writing and enforcing regulations based on
laws passed by Congress
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•
Contract – an agreement to exchange goods or services
for something of value, usually money
• May be written or unwritten
• Individuals (consumers) AND businesses benefit from
government enforcement of contracts
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•
Purely intangible – cannot touch it
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Patents
Copyrights
Trademarks
Music
Art
Discoveries & Inventions
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•
Patents give the inventor the exclusive right to make,
use, or sell the item for 17 years.
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•
Copyright law protects the creative work of authors,
composers, and artists.
•
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Continue for the life of the person receiving the
copyright and for 50 years after the person’s death
Identified with the ©
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•
Trademark is a word, letter, or symbol associated
with a specific company or product.
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Company names
Team names
Label designs
Identified with a symbol – a logo
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1. Regulating Utilities:
•
Public utility – an organization that supplies a service
or product vital to all people
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Phone service (land line)
Water
Electricity
The rates they can charge have to be approved by
government agencies
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2. Preventing Unfair Business Practices
•Promote fair competition
 If a company charges different prices to
different people for the same product
 Monopoly – when a business has control of the
market for a product or service. No
competition
 Antitrust – prevent unfair practices such as false
advertising, deceptive pricing, and misleading
labeling.
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1. Census – helps business decide where the
2.
3.
4.
5.
most potential customers are
Bureau of Labor Statistics
Department of Agriculture
Department of Commerce
Government loans (SBA –Small Business
Administration)
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Tornadoes
Floods
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1. Government buys and uses a wide range of items
 Filing cabinets
 Fleets of automobiles
 Jet aircraft
 Computers
2. Total federal, state, and local government purchases
of goods and services = 20% of all the goods &
services produced in the U.S.
3. Many business depend on government contracts for
survival
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4. Government hires workers
a. Government is the single largest employer in our
economy
b. Police officers, fire fighters, and sanitation
c. Judges
d. Secretaries
e. Administrative assistants
f. Lawyers
g. Teachers
h. Meat inspectors
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i. Data analysts
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1. Taxes –
• Income taxes
• Social Security tax
• Property taxes
• Sales taxes
• Federal Insurance Contributions Act (FICA) tax
• Medicare tax
2. Borrowing – government borrows money by selling bonds
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Courthouse
Convention Center
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Income tax – tax levied on the income of individuals or
business
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Property tax – a tax that an owner is required to pay
on the value of the property being taxed.
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Sales tax – one type of tax and is calculated and
collected when people purchase items or receive
certain services.
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Federal Insurance Contributions Act (FICA)
tax – payroll (or employment) tax imposed by the
federal government on both employees and employers
to fund Social Security and Medicare: federal
programs that provide benefits for:
• retirees, the
•disabled, and
•children of deceased workers
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Social Security Tax – tax collected to fund Social
Security program. The contribution on this tax is 6.2%
of an employee’s income paid by the employer, and
6.2% paid by the employee (12.4% total). This tax has a
maximum cap limit amount.
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Medicare tax – tax collected to fund the Medicare
program. (Health insurance program for the elderly and
disabled.)
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Bonds are ‘loans’ to the government
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