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Government Roles In the Economy, Promoting a Stable Market, image, image -…
Government Roles In the Economy
Drawbacks of Government Involvement in the Economy
It is against the law for government officials to use private information to gain profit, this is considered inside trading
Government employees are often well paid and have good job security. This can lead some to become lazy and inefficient at their job. That is our tax dollars paying their bloated salary!
Private companies run on profit so finding efficiencies makes you more competitive and profitable.
Environmental Protection
Why is it important & Examples
Environment and climate change
Protecting and conserving out natural heritage, and ensuring a clean, safe sustainable environment
Examples
forestry
Crown Corporation
Crown corporations are wholly owned federal or provincial organizations that are structured like private or independent businesses. They are created to fulfill a need that will not make any profit for private companies, promote Canadian culture and identity
Examples
Air Canada, CBC, Canada post, Petro Canada
Ensuring the Safety of Consumers
Role of health Canada
Role of CSA
Product recalls
If a product passes all safety tests it is usually trusted in the market, however, the government agencies responsible for consumer safety cannot oversee all production.
Sometimes, produces slip through and enter the market that are not safe
A recall allows for the consumers to have their purchased good repaired for free or get a refund
Examples
Companies ensure that products meet industry standards for safety
Undergo extensive stress tests material science test
Examples
Governments oversee the production of some goods and services to ensure they are safe for consumers to use
Add certain labels
Laws put in place to ensure producers follow and meet the safety standards
Examples
Labour Laws
A law that is put in place to protect workers and employers rights, safety, and health. Enforce health and safety standards, and conducts workplace inspections.
To protect the workers and their rights. So they won't be over worked and they get mandatory breaks and limited work hours, rights to refuse unsafe work. A minimum wage.
Prevent Price Fixing
Price fixing is when several similar companies agree to increase the price of their good or service to increase profit.
Shell, Esso, and Petro Canada agreed to increase their fuel price to the same amount
Price fixing prevention is enforced under the
competition act
which promotes competition and ensure the best price for consumers
Promoting a Stable Market
What is a Monopoly?
A monopoly is when a company or a group has complete control over the supply of product or service
Why are Monopolies bad?
They cut out competitions
They can set the price at what they want
Less incentive to create better quality product (less competition)
The government can regulate the economy to make it more stable and predictable
Examples
Google
Facebook
Microsoft
Preventing monopolies and encouraging competition
Helps keep price stable for consumers
