Can they use regulation? In Snowlandia the government had a legal monopoly on the production of snow machinery in the country. They have decided to deregulate this legal monopoly to allow competition from other companies. They believe that by deregulating the market citizens will be encouraged to set up new businesses producing and selling snow machinery. By expanding this industry the government could create employment and increase exports.
Literacy
1. Would you describe the Snowlandia economy as (a) centrally planned (b) mixed or (c) free enterprise? Give reasons for your answer.
2. Can you think of additional policies the government could implement to improve their economic situation? Decide on at least two.
3. List all of the policies decided by everyone in the class. Have a discussion until you reach agreement on the three best policies the government could implement.
Chapter Review Key Terms Checklist Using a pencil, place a ¸ in each box to indicate how well you
know and understand each Key Term. q I know and understand this Key Term.
q I am still a bit uncertain about what this Key Term means. q I don’t understand this Key Term yet.
When you revise each chapter, tick the boxes again to indicate how much you have learned.
1. 2.
3. 4.
Economic policies are the goals to be achieved by governments and the methods they will use to achieve them.
Fiscal policy refers to the ways in which a government can influence an economy through the use of government income (revenue) and expenditure.
Government current income is money that the government receives regularly.
Government capital income is money the government receives occasionally or one time only.
