Part of a series which offers educational resources and teaching techniques related to major social issues to high school social studies classroom teachers, the guide focuses on government regulation. The document is presented in four major chapters. Chapter I explores how economic and political science frameworks can be used to analyze policy issues. Chapter II presents an overview of the relationship between the economy and government regulation. Topics discussed include the economic rationale for regulation, control of natural monopolies, prevention of destructive competition, protection of sellers and consumers, regulatory processes, and evaluation of regulatory policy. Chapter IV presents instructional activities which involve students in identifying and describing problems involving governmental regulatory action, class discussion, participating in small group tasks, compiling master lists of alternative costs and benefits of various regulatory actions, preparing position papers, and analyzing films. For each activity, information is presented on grade level, sequence within the unit, time and material required, rationale, concepts, instructional objectives, teaching strategies, and pupil activities. Student readings, bibliographic suggestions, and illustrative material such as advertisements are included in the unit. (DB)