Starter task

Write down everything you know about government for the hot

seat challenge!

The role of government II

BTEC Business studiesLevel 2Unit 1

Learning objectives

£ I can discuss the meaning of government

££ I am able to explain the meaning of the economy

£££ I am able to identify ways in which the government encourages business

The European government

• Effects all members of the EU• Protects internal market• Promotes competition laws to keep prices fair

for all members• Encourages product standardisation

Local government

• All areas in UK have a local council• They promote their own area• Try to encourage businesses to locate their

(grants and other incentives)

The government and the economy

Businesses want a country to have strong economic growth. This includes:1. Steady economic growth – so the economy grows

each year2. Full employment – so that everyone who wants a job

can find one3. Sustained low inflation – so process and wages

increase a small amount each year http://www.bankofengland.co.uk/education/inflation/calculator/flash/index.htm

4. A surplus on the balance of payments – which means that the UK exports more than it imports

FirmsHouseholds

Hire labour

Pay wages

Buy goods

Spend money

The job of the government

1. Encourage consumers to spend by setting low tax rates and paying state benefits to those below a certain minimum income

The job of the government

2. Encourage business to increase investment in new machinery, equipment and staff by keeping interest rates low and promoting business confidence

The job of the government

3. Encourage exports od goods and discourage imports

The job of the government

4. Spend money on new projects for the future, such as road building and schools.

Review learning objectives

1. Very confident2. Quite confident3. Think I understand4. Not sure5. Really don’t know