-Gov limits this by preventing restraint of trade: requiring producers to pay the costs of damages to the environment, reducing restrictions on a business that can't be justified on a cost-benefit basis.Economic equity- Requires that an economic transaction is fair to each party- Transactions considered "fair" if each party enters into it freely and ethically-Interventions promoting equity- Food and Drug Administration (1907)• Protect against unsafe food an drugs- Fair Labor Standards Act (1938)• Set a minimum wage and Limits the use of child laborEconomic policy- Course of action designed to promote and regulate economic interests- Use of fiscal and monetary actions to foster economicgrowth and stabilityEconomic recessionA less-severs downturn, gov spending should be increased but by a lesser amount.Economya system of production and consumption of goods and services that are allocated through exchange.
Efficiency Through GovernmentIntervention/regulation1. Promoting competition- Markets not always competitive: monopolies or collusion- Goal of regulation is to restore competition2. Making business pay for indirect costs- Externalities: unpaid costs of production3. promote economic efficiency and equityEmployer Mandate• Employers with 50 or more full-time employees required to offer insurance or pay penalty- Employers with 50 or fewer employees exempt from penalties.Note: employer mandate delayed until2015-2016.Entitlement programsmost programs that support individuals are these, and any individual that meets the requirements is eligible for the benefit. For example, upon reaching the legal retirement age, any senior citizen who has paid social security taxes for the required amount of time is entitled to receive social security benefits.Equality of Opportunity-the idea that people should have a reasonable chance to success if they make the effort. -Includes a commitment in equality that means everyone should have a fair chance to get ahead.-It is a form of equality shaped by liberty because the outcome, personal success or personal failure depends on what individuals do with that opportunity.Externalities-is the cost or benefit that affects a party who did not choose to incur that cost or benefit.-ex: a sofa plant doesn't pay for the pollution they put into the nearby stream and the cost does not show up in their product.Federal Court Appointees+Supreme Court-Supreme Court nominees- Presidents nominate those with compatible politicalphilosophy- Nominees must be acceptable to others- Very few nominees rejected by Senate after 19th century• Personal backgrounds of judicial appointees- Nearly all recent appointees from appellate courts- Most are white men, but diversity has increased in recentdecadesThe Federal Judicial System+judges1. Established by the Constitution as a separate andindependent branch of the federal government- The Constitution provides for the US Supreme Court- Gives Congress the power to decide the number and