regulation  The establishment. by the government, of rules aimed at influencing the behavior of firms and individuals. Regulation can involve setting prices, establishing product and workplace standards, and limiting entry into an industry.

eminent domain  The power of a government to take an individual's property for public use if the owner is fairly compensated.

regulatory  agency A unit of government created to set and enforce standards for a particular industry or area of economic activity.

merger  The combining of two or more separately owned firms into a single firm.

deregulation  The process of removing government restrictions on firms in order to promote competition or encourage economic activity.

common resource  A resource that everyone has access to and that can easily be overused or destroyed. Examples include the atmosphere and the oceans.

government  failure Inefficient allocation of resources caused by government intervention in the economy.

poverty rate  The percentage of the population that has a family income below a government-defined threshold, or poverty line.

Chapter Sections

11.1 – Introduction
11.2 – How Does the Government Protect Property Rights?
11.3 – What Regulatory Roles Does Government Play in Our Economy?
11.4 – How Should Government Address Externalities and Public Goods?
11.5 – What Does Government Do to Promote Economic Well-Being?

Chapter 11 - Textbook Scan