The Role of a Government in The Economy - Coggle Diagram
The Role of a Government in The Economy
What are they?
They are laws that protect the rights of the workers and employees.
It can protect the workers rights and freedoms in their employers company and from many other issues in the workplace.
Promoting a Stable Market
Monopoly: the exclusive possession or control of the supply of or trade in a commodity or service.
Why is a Monopoly bad?
They can set the price
Examples of a monopoly
What are they? Why do they exist?
They fulfill a need that place needs if other private companies can't make profit from it.
CBC, Canada Post
Ensuring the Safety of the Consumers
Role of Health Canada
Sets health regulations for companies and produce goods to keep humans protected from harm.
Role of CSA
Ensure that products meet industry standards for safety.
The government forcing a product to be returned becuase of safety issues.
Many economies are based on their environmental resources provided for them in their land. If environments are not regulated, many economies will fall.
Example of Environmental Regulation
The Canadian Environmental Protection Act, 1999 protects the environment from damage and major issues.
Prevent Price Fixing
What is it? Example
It is when companies together increase price of products to increase profit.
What protects consumers from companies doing it?
The Competition Act promotes competition and ensures the best prices for consumers.
Drawbacks of Government Involvement in the Economy
Government Corruption and Collusion
Governments sometimes use their power to do other things not revealed to the public. For examples, US Senators sold their stock portfolio after informing that COVID-19 would do damage to the stocks.
Waste and Inefficiencies
The government sometimes is wasteful with their money and resources. Since some government employees are well-paid, they become lazy but the government doesn't care and waste their money on useless workers.