Chapter 4-3: Government Regulation and Assistance

why does government regulate utilities?

assurance of fair prices, the conservation of resources, and to avoid overcrowding utility poles, such as power plants

how does government assist business? (3)

demographic data, buying goods and services, employing workers

monopoly

exists when a business has control of the market for a product or service

government assists business (2)

government buys goods and service and employs workers

tax revenue

money the government collects to cover the costs of services and their not required to pay back money

antitrust laws

prevent unfair business practices

regulatory activities (2)

regulation of utilities and prevent unfair business practices

borrowing

the government is required to pay back money that was borrowed

Tax levels for federal government

Income, corporate, Medicare 1.45%, social security 6.2%

Tax levels for local government

Income, property, COIT 1%

Tax levels for state government (indy)

Sales 7% and income 3.3%

public utility

an organization that supplies a service or product to all people