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The Role of Government in the Economy - Coggle Diagram
The Role of Government in the Economy
Promoting a Stable Market
A monopoly is when one product producer takes charge of the industry of the product they are producing. They get more sales than the other companies and have more power.
Monopolies are bad because they cut out any competition in the market meaning that theres no need to make better quality products. This also means they can set the pride to what they want
AT&T was found as a violation of the "US Antitrust Act" as it was the main telephone supplier in the US and was forced to split into 6 different telephone suppliers.
Ensuring the safety of the consumer
Health Canada is one thing that helps make sure consumers are safe. They check over products to make sure they are certified so that we are safe.They make sure that companies put a nutrition label on all food packaging and warnings on some.
Another company like Health Canada is the Canadian Standards Association (CSA). It ensures products meet the safety standards they're required to meet.
When the CSA or Heath Canada miss a product that is dangerous to people, they will recall it to make sure nobody else uses the product. This is called "Product Recalling". When this happens, they will give consumers a chance to get a free repair or give them a refund.
Environmental Protection
Because some companies are more focused on the profit than the environment, the government has to make sure that they do not cross the line and ruin the forests and environment.
Forestry companies that cut down trees in Canada do it on crown/public land. The government put a law that they have to pay to replant all of the trees that they cut down so that the area they cut down is still being protected.
Labor Laws
Labor laws are laws that protect the worker and what he does. This is like the government coming to inspect the workplace and teach workers specific ways to do their jobs safely and effectively.
These laws are important because they make sure that the workers are safe and can keep doing their job. When workers are able to do their jobs, that make so that Canadians can get the things that they need faster.
Crown corporations
Crown Corporations are organizations owned by provincial or federal organizations that are structured like privately owned organizations. Some examples are: CBC, Canada Post, VIA Rail, and The Bank of Canada.
Prevent Price Fixing
Preventing price fixing means that the government cannot fix their prices to be too different from the normal. This protects the costumer from any over pricing. This would be like if 3 different gas stations agreed to up all of their prices to gain more money.
The government passed a law that makes it so that the consumers will get the best price out of what they need. This is called The Competition Act. This act also makes sure that there is competition throughout the companies.
Drawbacks of government control
The government has a lot of control over us, they know our private information and can use it as profit. The good thing, is that theirs a law that tells them they are not allowed to gain a profit from our personal information.
Because of how well paid and secure the government is at the moment, they can become lazy and inefficient at their job.