Government role in the economy - Coggle Diagram
Government role in the economy
They Promote a stable market
Why are monopolies bad
They cut out competition, and if a company has a monopoly they can set the price at what they want.
an example of an monopolie is de beers and there monopolie 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.
Ensuring the Safety of the consumer
Role of CSA
they test products to make sure they are safe for us to use
Role of Health Canada
Health Canada sets safety regulations for companies that produce goods for human consumption.
This is the way the company fixes issues found after their product has been shipped out.
We have this to protect our environment.
An example is the national parks of canada which are areas that are protected by the government.
labour laws are governments enforce occupational health and safety standards.
They are important because they keep the workers safe and healthy.
Crown corporations are wholly owned federal or provincial organizations that are structured like private or independent businesses.
some exaples are cbc, canada post, via rail, and the bank of canada
Prevent Price Fixing
The government can ensure companies cannot fix their prices to be way above what the normal price
Drawbacks of government involvement in the economy
The government can sometimes use their power for bad and then become corrupt.
An example is a group of US senators who sold a significant part of their stock portfolio after a private briefing about the damage COVID-19