CONTENT STATEMENT
- Governments can impact markets by means of spending, regulations, taxes, and trade barriers.
CONTENT ELABORATION
Examples of how governments policies can impact markets by means of spending, regulations, taxes and trade barriers can be found in early American history.
Spending by the United States and state governments has impacted markets by the financing of internal improvement, such as transportation networks including:
- roads;
- canals; and
- railroads.
The United States also purchased land for later development.
Regulations have been used by governments to control markets by limiting the production or exchange of goods.
Trade barriers, such as tariffs, are used by governments to impact markets. They are the means used to prevent certain exchanges of goods between nations.
EXPECTATIONS FOR LEARNING
Analyze the impact government can have on markets by spending, regulating, taxing, and creating trade barriers.