The Role of a Government in Economy
Promoting a Stable Market
Customer Protection
An example of a previous monopoly is back in the 1900s, when De Beers Consolidated Mines once controlled the entire market for diamonds across the globe
What is the role of Health Canada? Health Canada is obligated to set regulations for companies that produce goods for human consumption
Why are monopolies bad? Monopolies are bad because they cut out competition, there is less incentive to produce good-quality products, and the company that leads a monopoly is able to set the price of each product at whatever they desire
What is the role of the Canadian Standards Association? The CSA ensures that products meet industry standards for safety
What is a monopoly? A monopoly is a term used when a company or group has complete control over the supply of a product or service
What are product recalls? Sometimes, harmful products slip through safety tests and enter the market. If they do, the government can force the producer's company to issue a recall on the contaminated product
click to edit
Environmental Protection
Why is environmental protection important? By practicing environmental protection, we conserve our natural heritage and ensure a clean, safe, and sustainable environment for present and future generations
The Canadian Environmental Protection Act from 1999 assesses, manages, and regulates industry risks such as pollution
Prevent Price Fixing
Crown Corporations
click to edit
Labour Laws
Why are they important? Their importance lies within how the laws themselves assist the business and the employees aswell.
What are they? Labour Laws deal with things such as collective bargaining, organazied labour and union.
Drawbacks of Government Involvment within the Economy
Waste and Inefficiencies, government employees are paid well and have great job security this leads to them being WAY too comfortable making them lazy and inefficent.
The opposite can be said for private companies since they run on profit.
Government corruption and collusion. Insider-trading in other words trading private information to outsiders that you shouldn't be giving information to.
What is it? It is and act deemed anti-competitive and ultimately hurts consumers and businesses.
What act protects consumers from companies price-fixing?
Examples: Canada Post & The Bank of Canada
What are they? Public sector organizations funded by the .B.C. government to provide specialized goods and services to citizens.
Why do they exist? They exist because they were made to provide services in a vast sparsely populations.
The Competition Act, It prevents anti-competitive practices within the marketplace to protect consumers.