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Government Role In the Economy, Ensuring the Safety of the Consumer,…
Government Role In the Economy
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Why are monopolies bad ?
• They cut out competition.
• If a company has a monopoly they can set the price at what they want.
Example of a monopoly : De Beers consolidated Mines once controlled a majority of the market for diamonds.
They gained control by pricing out their competitors and once they had control they could also control the price of diamonds.
What is a monopoly ? A monopoly is when a company or group has complete control over the supply of a product or service.
Why is Environmental Protection important ? Environment and Climate Change Canada informs Canadians about protecting and conserving our natural heritage, and ensuring a clean, safe and sustainable environment for present and future generations.
Example of environmental regulation on businesses : Forestry companies usually harvest trees from public or ‘crown’ land.
After they clear the trees off the land, they have to pay to have the land re-planted with trees to ensure the sustainability of our forests.
Role of Health Canada : Health Canada sets safety regulations for companies that produce goods for human consumption.
Role of CSA : Companies like the Canadian Standards Association and the Consumer Product Safety Commission ensure that products meet industry standards for safety.
Product Recalls : If a product passes all safety tests it's usually trusted in the market. A recall also also allows the consumer to have their purchased good repaired for free, or get a refund.
What are Labour Laws ? In Canada in every province there are laws that protect worker and employer rights. Labour laws conduct workspace inspections, they also investigate workplace accidents and injury.
Why are labour laws important ? Labour laws are important because they protect workers, or anyone from misunderstandings of being taken advantage of.
What are Crown Corporations, and why do they exist ? Crown corporations are owned federal or provincial organizations that are structured private, or independent businesses.
Some examples of crown corporations : Some crown corporation examples are
CBC
Canada Post
Bank of Canada
Privatized crown corps examples
Air Canada
Petro Canada
Canada National Railway
Government corruption and collusion : Governments have a lot of power and are privy to information outside the public sphere. It is against the law for government officials to use private information to gain profit. Its something illegal called "Insider Trading."
Waste and inefficiencies : Government organizations sometimes have a reputation for being inefficient and wasteful.
Government employees are often well paid and also have good job security, which also leads them to become lazy in their job.
Private companies run on profit so finding efficiencies makes you more competitive and profitable.
What is price fixing ? Price fixing occurs when several similar companies agree to inflate the price of their goods of services to increase profits. It goes against the law of supply and demand by in a sense creating a monopoly.
What act protects consumers from companies price-fixing ? The Act that protects consumers from companies price-fixing are the Consumers Act.
Ensuring the Safety of the Consumer
Promoting a Stable Market
Environmental Protection
Crown Corporations
Prevent Price Fixing :
Drawbacks of Government Involvement In the Economy
Labour Laws