Government Regulation

The US Government regulates business monopolies through a series of acts and regulations. Read pages 162-164 of your textbook. Take note of the Acts and what each Act regulates. Watch this video on the role of government regulation:

Read section 7.1 of your textbook. Be able to explain how the federal government regulates monopolies and promotes fair competition. Also be able to explain how bankruptcy protects businesses from creditors.


Read the following article on how the government moved to block the US Airways- American Airlines merger.

http://www.washingtonpost.com/blogs/wonkblog/wp/2013/08/15/why-the-justice-department-blocked-the-american-us-airways-merger/

From your reading, discuss the following questions. Be able to cite evidence from the article to support your answer.:

• Why had the government been so willing to allow airline mergers in the past?
• What does the article tell you about how the Acts and regulations are enforced? Which branch of government is entrusted with enforcing the law?
• How would the merger have hurt competition and harmed consumers?

Assignment: Log on to Quizlet and view ALL of the flashcards. Complete learn on the first 5 terms and be prepared to take a quiz at the beginning of our next class.

Participation in the discussion is worth 5 points. Completing the Quizlet assignment is worth 5 points as well.