Standard 12.3

12.3 Students analyze the influence of the federal government on the American economy:

Section 1. Understand how the role of government in a market economy often includes providing for national defense, addressing environmental concerns, defining and enforcing property rights, attempting to make markets more competitive, and protecting consumers’ rights.

Section 2. Identify the factors that may cause the costs of government actions to outweigh the benefits.

Section 3. Describe the aims of government fiscal policies (taxation, borrowing, spending) and their influence on production, employment, and price levels.

Section 4. Understand the aims and tools of monetary policy and their influence on economic activity (e.g., the Federal Reserve).