Impact of Government on Business Activities within our
Free Enterprise System
Course Title – MONEY MATTERS
Lesson Title –Impact of government on business activities within a free
enterprise system.
Specific Objectives –
1. The student will determine the relationship between government and
business.
2. The student will describe the nature of taxes.
Performance Objectives: The student will list ways the government:
1. Provides protection
2. Regulates the economy
3. Assists business
4. Raises money
Preparation
TEKS: 130.62.(c)3(C); 4(A)(B)
Occupational Correlation (O*Net – http://www.onetonline.org/)
33-3051.01 - Police Patrol Officers - Patrol assigned area to enforce laws and
ordinances, regulate traffic, control crowds, prevent crime, and arrest violators.
Sample of reported job titles: Police Officer, Patrolman, Patrol Officer,
Police Sergeant, State Trooper, Police Patrol Officer, Public Safety Officer,
Law Enforcement Officer, Alcohol Law Enforcement Agent, Officer
A.
13-2011.01 – Accountants - Analyze financial information and
prepare financial reports to determine or maintain record of assets,
liabilities, profit and loss, tax liability, or other financial activities within an
organization.
Sample of reported job titles: Accountant, Certified Public Accountant
(CPA), Staff Accountant, Accounting Manager, Cost Accountant, General
Accountant, Accounting Officer, Business Analyst, Accounting Supervisor,
Financial Reporting Accountant
B.
13-1041.04 - Government Property Inspectors and
Investigators Investigate or inspect government property to ensure compliance with contract
agreements and government regulations.
Sample of reported job titles: Housing Quality Standard Inspector (HQS
Inspector), Housing Inspector, Asset Manager, Quality Assurance Specialist,
Airport Operations Officer, Housing Management Representative, Inspector,
Construction Inspector, Quality Control Manager, Sanitation Inspector
Copyright © Texas Education Agency, 2012. All rights reserved.
1
Equipment Needed:


Computer with internet, presentation software and projection capabilities
1 for each student of each handout/resource:
 “Where do tax dollars go?
 Government in Our Economy Word Search
 Quiz over Types of Taxes
 Interactive whiteboard or other method of writing notes for students to
contribute to and view/copy.
 Handout of presentation with notes blanks
Teaching Strategies:






Ask students why and how the government is involved in today’s economy
and business world.
(Begin presentation) State that the Constitution gives Congress the power to
become involved in business and labor – hence our economy. Would there
be an economy without business and labor?
Guide students through the presentation and ask students to name some of
the ways that the government is involved in our economy. (Write some of
their suggestions on the board.) Advance to the list of 5 specific things the
government does on slide #2.
Guide students through the other slides of the presentation. Pause to take
comments and answer questions as necessary.
Pause between slide 14 and 15. Discuss the ways the government
contributes to our economy.
Beginning with slide 15, transition to a focus on how the government raises
money.
Learner Preparation:
Have students complete the Word Search as a focus activity, to turn their minds
to the topic of the day. Ask if they knew the meaning of any of the terms.
Discuss briefly, and then commit to defining the terms and explaining the
meaning in today’s lessons.
Introduction:
Important Terms for this Lesson:
1. Interstate commerce – business transaction involving companies in more
than one state
2. Intrastate commerce – business activities within one state’s borders
3. Intellectual property – (intangible – cannot touch it)
4. Contract – an agreement to exchange goods or services for something of
value, usually money
a) may be written or unwritten
b) individuals (consumers) AND businesses benefit from government
enforcement of contracts
4. Patent – gives the inventor the exclusive right to make, use, or sell the item
for 17 years.
Copyright © Texas Education Agency, 2012. All rights reserved.
2
5. Copyright – protects the creative work of authors, composers, and artists.
a) continues for the life of the person receiving the copyright and for 50 years
after the person’s death
b) identified with the ©
6. Trademark – a word, letter, or symbol associated with a specific company or
product
a) company names
b) team names
c) label designs
d) identified with a symbol – a logo
7. Public utility – an organization that supplies a service or product vital to all
people, (example: water, electricity, phone service – some of which have
since been deregulated)
8. Monopoly – when a business has control of the market for a product or
service. There is no competition.
9. Antitrust – prevent unfair practices such as false advertising, deceptive
pricing, and misleading labeling.
10. Tax – a financial charge upon an individual by a state or functional equivalent
such that failure to pay is punishable by law.
11. Income tax – tax levied on the income of individuals or business
12. Social security – tax collected to fund the Social Security program
13. Property tax – a tax that an owner is required to pay on the value of the
property being taxed.
14. Federal Insurance Contributions Act (FICA) – payroll (or employment) tax
imposed by the federal government on both employees and employers to
fund Social Security and Medicare:
15. Medicare tax – tax collected to fund the Medicare program. (Health
Insurance program for the elderly and disabled)
Assessment:
Quiz over Types of Taxes
Government, Business, and the Economy TEST
Additional Resources:
Textbooks:
Sullivan, Arthur, and Steven M. Sheffrin. Prentice Hall economics: principles in
action. Boston, MA: Pearson/Prentice Hall, 2007. Print.
Websites:
About taxes.net - http://www.abouttaxes.net/
Foster, Chad. Financial literacy for teens. Conyers, Ga.: Rising Books, 2005.
Print.
National Endowment for Financial Education. (2006). NEFE High School
Financial Planning Program. Greenwood Village, CO: NEFE.
Copyright © Texas Education Agency, 2012. All rights reserved.
3
The Jump$tart Coalition for Personal Financial Literacy. (2010). 2008
JUMP$TART HIGH SCHOOL SENIOR QUESTIONNAIRE
"OSHA-Employer Responsibilities." Occupational Safety and Health
Administration - Home. N.p., n.d. Web. 8 June 2012.
<http://www.osha.gov/as/opa/worker/employer-responsibility.html>.
"Employment Opportunity and Affirmative Action FAQs - Office of Equal
Opportunity and Diversity - The University of Iowa." The University of
Iowa. N.p., n.d. Web. 8 June 2012.
<http://www.uiowa.edu/~eod/searches/manual/FAQ/index.html>.
"Wikipedia, the free encyclopedia." Wikipedia, the free encyclopedia. N.p., n.d.
Web. 8 June 2012. <http://en.wikipedia.org/>.
"Curriculum | Educating About Intellectual Property." HOME | Educating About
Intellectual Property. N.p., n.d. Web. 8 June 2012.
<http://www.educateip.org/index.php/curriculum>.
Introduction
Introduction (LSI Quadrant I):
Have students complete the Word Search as a focus activity, to turn their minds
to the topic of the lesson. Ask if they knew the meaning of any of the terms.
Discuss briefly, and then commit to defining the terms and explaining the
meaning in today’s lesson.
Copyright © Texas Education Agency, 2012. All rights reserved.
4
Outline
Outline (LSI Quadrant II):
MI
Outline
I. Introduction:
A. Have students complete the Word
Search as a focus activity
Notes to Instructor
The word search will help
turn students’ minds to the
terms and topics of the
lessons.
B Ask students why and how the
government is involved in today’s
economy and business world.
II. Government in our Economy – View Slide #2
and identify the five ways government is
involved in our economy
A. Protection: (Slide #3) - The Federal
Government oversees the activities that
involve 2 or more states or other countries
1. Business transactions involving
companies in more than one state
are called interstate commerce
2. Business activities within one state’s
borders are called intrastate commerce
III. Government in our Economy (continued) –
View Slides #4 – 14
A. (continued) Protection provided by
Government:
1. Police and fire-fighting services
2. Armed forces
3. OSHA – Occupational Safety &
Health Administration
4. Equal Opportunity Employer
5. EPA – Environmental Protection
Agency
6. Contracts and property rights
(Begin multimedia
presentation) State that
the government acts to
encourage the production
of goods and services and
to regulate these forms
against unfair practices
among business and labor.
Its role in regard to labor
is to ensure that labor can
negotiate for fair wages,
salaries, benefits, and
general working
conditions.
View Slide #4 - Identify
another 6 ways that
Government provides
protection. Emphasize
that these 6 ways that
Government provides
protection are in addition
to interstate and intrastate
commerce discussed
previously.
Proceed through slides #416, which discuss further
Copyright © Texas Education Agency, 2012. All rights reserved.
5
each of the 6 items of
protection provided by
government. (Further
notes provided on each
slide.)
Students should take notes
on their copy of the
presentation handout.
B. Methods used by Government to
Regulate an Economy
1. Regulating Utilities
2. Preventing Unfair Business
Practices
Slide #15 – 16 – Discuss
with students the
methods used to regulate
an economy
C. Government Assists Business
Slide #17 – Emphasize
that ALL of the
organizations listed are
funded through tax
dollars to the
government.
Students should take notes
on their copy of the
presentation handout.
Students should take notes
on their copy of the
presentation handout.
D. Government Produces Goods &
Services
1. Everything needed to run a
business is also needed to run the
government – offices, cars,
equipment, etc.
2. Government purchases 20% of all
the goods & services produced in
the U.S.
Slide #18 – Discuss with
students the content of
the slide. Ask students
for other items that the
government might use
that are not on the list,
i.e. paper, pencils,
desks, chairs, etc.
Copyright © Texas Education Agency, 2012. All rights reserved.
6
Verbal
Linguistic
E. Government Hires Worker –
Government is the single largest
employer in our economy
1. Police officers, fire fighters, etc.
2. Judges
3. Secretaries
4. Administrative assistants
5. Lawyers
6. Teachers
7. Mean inspectors
8. Data analysts
Slide #19 – Discuss with
students the content of
the slide. Ask students
for other employees that
are not on the list
F. Government Raises Money
1. Taxes
2. Borrows
Slide #20-27 – Discuss
with students the content
of each slide.
Logical
Mathematical
Visual
Spatial
Musical
Rhythmic
Bodily
Kinesthetic
Intrapersonal
Interpersonal
Naturalist
Copyright © Texas Education Agency, 2012. All rights reserved.
7
Existentialist
NAME: ___________________________DATE: ____________ PER:___
WHERE DO TAX DOLLARS GO?
Lisa makes $31,943 a year. She wants to know where her taxes go. Help her find out by
using an online tax calculator, and answer the following questions.
1. What is the effective tax rate for the current year? _________________
2. What are the total taxes deducted from Lisa’s salary? ____________________
3. What are the top 4 areas where Lisa’s tax money is going?
a. __________________________________
b. __________________________________
c. __________________________________
d. __________________________________
4. How much of Lisa’s money is going for agriculture? _______________________
a. Natural resources? __________________
5. What is the total amount of tax dollars that Lisa would have had to pay in each of
the following years? And what would her salary have been in those years?
a. 1940? _________________ $__________________
b. 1960? _________________ $__________________
c. 1980? _________________ $__________________
d. 2000? _________________ $__________________
6. In 1940 how were tax dollars used? How much of Lisa’s tax dollars were spent in
each area?
Area
Lisa’s Tax Dollars
a. ___________________________ $_______________________
b. ___________________________ $_______________________
c. ___________________________ $_______________________
d. ___________________________ $_______________________
e. ___________________________ $_______________________
f. ___________________________ $_______________________
g. ___________________________ $_______________________
Copyright © Texas Education Agency, 2012. All rights reserved.
8
Where do tax dollars go?
Lisa makes $31,943 a year. She wants to know where her taxes go. Help her find out by
an online tax calculator, and answer the following questions.
1. What is the effective tax rate for the current year? ___17_________%
2. What are the total taxes deducted from Lisa’s salary? $__5,423____________
3. What are the top 4 areas where Lisa’s tax money is going?
a. __Social Security____________________
b. __National Defense__________________
c. __Health___________________________
d. __Other____________________________
4. How much of Lisa’s money is going for agriculture? $__39________________
a. Natural resources? $__96_____________
5. What is the total amount of tax dollars that Lisa would have had to pay in each of
the following years? And what would her salary have been in those years?
a. 1940? $__71_____________ $__2,065___________
b. 1960? $__699____________ $__4,366___________
c. 1980? $__1,891___________ $__12,153__________
d. 2000? $__4,673 __________ $__25,397__________
6. In 1940 how were tax dollars used? How much of Lisa’s tax dollars were spent in
each area?
Area
Lisa’s Tax Dollars
a. _National Defense____________ $__10___________________
b. _Net Interest ________________ $___6___________________
c. _Human Resources___________ $___12__________________
d. _Agriculture ________________ $___2___________________
e. _Natural Resources, Environment $___7___________________
f. _Other_____________________ $__13___________________
g. _Social Security _____________ $__21___________________
Copyright © Texas Education Agency, 2012. All rights reserved.
9
Quiz over Types of Taxes
Name: _______________________
Part 1. Multiple-Choice – Identify the correct response to each of the following
statements. Write the letter corresponding to the correct answer in the space provided to
the left of each item.
___1. Which of the following is true about sales taxes?
a. The national sales tax percentage rate is 6%
b. The federal government will deduct it from your paycheck
c. You don’t have to pay for tax if your income is very low
d. It makes things more expensive for you to buy.
___2. Your take home pay from your job is less than the total amount you earn. Which of
the following best describes what is taken out of your gross earnings?
a. Social security and Medicare contributions
b. Federal income tax, property tax, and Medicare and social security
contributions
c. Federal income tax, social security tax and Medicare contributions
d. Federal income tax, sales tax, and social security contribution
___3. Chelsea worked her way through college earning $15,000 per year. After
graduation, her first job pays $30,000. The total dollar amount Chelsea will have to pay
in Federal Income taxes in her new job will:
a. More than double, from when she was in college
b. Go up a little from when she was in college
c. Stay the same as when she was in college
d. Be lower than when she was in college
Part 2. Matching – Match each of the following terms with the correct response. Write
the letter corresponding to the correct answer in the space provided to the left of each
item.
___4. A tax charged at the point of purchase
for certain goods and services
Contributions Tax)
a. FICA tax (Federal
Insurance
___5. Tax imposed by the federal government
to fund social security and Medicare
b. Tax
c. Sales Tax
___6. A financial charge upon an individual by a
state or functional equivalent such that failure
to pay is punishable by law.
Copyright © Texas Education Agency, 2012. All rights reserved.
10
Part 3. Short Answer – Respond to the following questions using what you have learned
in class.
7. How is the amount of income tax you have to pay decided?
8. Joel just recently accepted a new job, how will this affect the taxes he pays to the
government?
9-10. List two areas of the government that your tax dollars are funding.
Copyright © Texas Education Agency, 2012. All rights reserved.
11
Quiz over Types of Taxes – Teacher Master
1.
D
2.
C
3.
A
4.
C
5.
A
6.
B
7.
It is a percentage of the amount of gross income decided by the local, state, and
national government
8.
It depends on how much he will make. If he is paid more at his new job the
amount of taxes he will have to pay will rise. If his pay is lower, he will pay
less in taxes.
9-10. Answers could vary, possible responses: National defense, human resources,
agriculture, natural resources, social security, law enforcement, welfare, etc.
Sources:
National Endowment for Financial Education. (2006). NEFE High School Financial Planning Program.
Greenwood Village, CO: NEFE.
The Jump$tart Coalition for Personal Financial Literacy. (2010). 2008 JUMP$TART HIGH SCHOOL
SENIOR QUESTIONNAIRE
Copyright © Texas Education Agency, 2012. All rights reserved.
12
GOVERNMENT IN OUR ECONOMY
Word Search Activity
ANTITRUSTLAWS
INTERSTATECOMMERCE
PATENT
TRADEMARK
CONTRACT
INTRASTATECOMMERCE
PUBLICUTILITY
COPY
MONOPOLY
REVENUE
Copyright © Texas Education Agency, 2012. All rights reserved.
13
GOVERNMENT IN OUR ECONOMY
KEY
Word Search Activity
Copyright © Texas Education Agency, 2012. All rights reserved.
14
NAME: ______________________________________ DATE:________ PER: _______
GOVERNMENT, BUSINESS AND THE ECONOMY TEST
True/False
Indicate whether the sentence or statement is true or false.
____
1. In our private enterprise system, the government's role is less extensive than in other economic
systems.
____
2. Intrastate commerce refers to business transactions involving companies that do business only in
one state.
____
3. An example of government protection is through contracts.
____
4. A contract must be written to be enforceable.
____
5. Intellectual property is tangible.
____
6. A patent protects the creative work of authors, composers, and artists.
____
7. One of the functions of government is to prevent unfair business practices.
____
8. Governments can help businesses in many ways but not through loans.
____
9. Revenue is another name for government income.
____ 10. One of the ways in which governments borrow money is through the selling of bonds.
Multiple Choice
Identify the letter of the choice that best completes the statement or answers the question.
____ 11. Business transactions involving companies in more than one state are referred to as ____.
a. intrastate commerce
c. multiple state business
b. interstate commerce
d. none of the above
____ 12. An agreement to exchange goods or services for something of value is called a ____.
a. contract
c. copyright
b. bargain
d. market
____ 13. When individuals or companies create new products, they may seek to obtain ____.
a. a copyright
c. a patent
b. a contract
d. none of the above
____ 14. Which of the following is a correct description of a copyright?
a. issued for 17 years
b. issued for inventions
c. lasts for 50 years only
d. continues for the life of the person receiving it, and beyond
____ 15. Which of the following is true about public utilities?
a. Most are owned by the government.
b. Most are small businesses.
c. They are not generally regulated by the government.
d. They are regulated for the public benefit.
Copyright © Texas Education Agency, 2012. All rights reserved.
15
____ 16. Which of the following is NOT true about a monopoly?
a. controls a market for a particular product or service
b. operates in some cases with the permission of government
c. promotes competition and tends to set fair prices
d. can charge higher prices and provide low-quality service
____ 17. Which of the following is true about our federal government?
a. It is the largest employer in our economy.
b. It is an important economic force because of its purchasing power.
c. It must raise money to fund operations and pay wages.
d. all of the above
____ 18. Which of the following is NOT one of the ways in which government raises money?
a. through taxes
c. through selling bonds
b. through selling stock
d. through fees and licenses
____ 19. Which of the following is the largest source of revenue for local governments?
a. sales tax
c. real estate property tax
b. income tax
d. excise tax
____ 20. A trucking company that ships products to several states would be regulated by the ____.
a. local government
c. federal government
b. state government
d. none of the above
____ 21. A trucking company that hauls products only within a state's boundaries would be regulated by
the ____.
a. local government
c. federal government
b. state government
d. none of the above
____ 22. Which of the following is considered a contract?
a. lease to rent an apartment
b. credit card agreement
c. signed written agreement to have a new roof installed
d. all of the above
____ 23. A word, letter, or symbol associated with a specific company or products is its ____.
a. copyright
c. patent
b. trademark
d. none of the above
____ 24. When a business has control of the market for a product or service, it is called ____.
a. a patent
c. a monopoly
b. a trademark
d. none of the above
____ 25. Antitrust laws prevent ____.
a. false advertising
c. misleading labeling
b. deceptive pricing
d. all of the above
____ 26. Some of the things provided by government are ____.
a. roads
c. national defense
b. schools
d. all of the above
____ 27. Public utilities provide ____.
a. gas
c. electricity
b. water
d. all of the above
____ 28. Some of the things provided by both government and private businesses are ____.
a. package delivery
c. retirement program
b. health insurance
d. all of the above
Completion
Copyright © Texas Education Agency, 2012. All rights reserved.
16
Complete each sentence or statement.
29. ____________________ refers to business transactions involving companies in more than one
state.
30. An agreement to exchange goods and services for something of value is a(n)
____________________
31. A(n) ____________________ is a word, letter, or symbol associated with a specific company or
product.
32. A(n) ____________________ exists when a business has control of the market for a certain
product or service.
33. ____________________ laws are designed to promote competition and to prevent monopolies
and other unfair business practices.
34. A(n) ____________________ gives an inventor the exclusive right to make, use, and sell the item
for 17 years.
35. A(n) ____________________ protects the creative work of authors, composers, and artists.
36. Utility companies are usually privately owned and usually are closely regulated by government
(rates, etc.) and are known as ____________________ utility companies.
37. Governments borrow money by selling ____________________.
38. Government income is known as their ____________________.
39. Government raises money by levying of taxes and ____________________ money.
40. If Fieldale has 9,000 employees who work for the government, what percent of the 45,000
employees in the city work for the government?____________________
Short Answer
41. Discuss how a logo can increase sales.
42. Explain how some owners of companies depend on the government for money even though they
do not work for the government.
Copyright © Texas Education Agency, 2012. All rights reserved.
17
GOVERNMENT, BUSINESS AND THE ECONOMY
Answer Section
TRUE/FALSE
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
ANS:
ANS:
ANS:
ANS:
ANS:
ANS:
ANS:
ANS:
ANS:
ANS:
T
T
T
F
F
F
T
F
T
T
MULTIPLE CHOICE
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
ANS:
ANS:
ANS:
ANS:
ANS:
ANS:
ANS:
ANS:
ANS:
ANS:
ANS:
ANS:
ANS:
ANS:
ANS:
ANS:
ANS:
ANS:
B
A
C
D
D
C
D
B
C
C
B
D
B
C
D
D
D
D
COMPLETION
29.
30.
31.
32.
33.
34.
ANS:
ANS:
ANS:
ANS:
ANS:
ANS:
Interstate commerce
contract
trademark
monopoly
Antitrust
patent
Copyright © Texas Education Agency, 2012. All rights reserved.
18
35.
36.
37.
38.
39.
40.
ANS:
ANS:
ANS:
ANS:
ANS:
ANS:
copyright
public
bonds
revenue
borrowing
20 percent
SHORT ANSWER
41. ANS:
A product logo can become so common to the consumer that they will eventually ask for the logo
(brand name) rather than the product. For example, they might say, "hand me the Crest" rather
than saying, "hand me the toothpaste." Many people will ask you to "Xerox" something when
they mean to make a copy-not realizing that they're just saying the brand name. This fixation of
name will increase sales.
42. ANS:
These companies manufacture or sell products which the government buys or they provide a
service which the government needs in order to provide services to taxpayers (ex.-a paving
company would be hired to pave roads which would be paid for with taxpayers' money).
Copyright © Texas Education Agency, 2012. All rights reserved.
19