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Government Involvement in the Economy - Coggle Diagram
Government Involvement in the Economy
Ensuring the safety of the consumer
Role of Health Canada
Health Canada provides safety regulations for companies that produce goods
They reguire companies to clearly display the nutrition value of a food item and require cigarette companies to display the potention harms on the paclaging
Product Recall
When a product passesall safety tests and is put in the market, it is usually trusted, but the government cannot oversee every product. As a result, sometimes products that are not safe slip through. In this case, companies will have to recall said products. This allows consumers to get refunds or their products repaired.
Role of CSA
Companies such as the Canadian Standards Association ensure that products meet inducustry standards of safety
Environmental Protection
Why it is important
Environmental protection is important because some companies care about profits more than the environment. If there was no law, there would be much more pollution.
Example of environmental regulation of businesses
The Canadian Environmental Act, 1999 (CEPA 1999)
Labour Laws
What are they?
Laws that protect worker and employer rights
Why are they important?
They enforce safety and health in Canadian workplaces.
Crown Corporations
What are they and why do they exist?
Some Examples
CBC, Canada Post, VIA Rail, Bank of Canada
Crowned corporations are federal or provincial owned organisations that are private or independent businesses.
Prevent Price Fixing
What is Price Fixing?
Price fixing is when companies agree to sell a product for higher to increase sales. It disrupts demand and supply.
What act protects consumers from companies price-fixing?
The Consumers Protection Act protects consumers from companies price-fixing. Businesses must follow the act.
Drawbacks of government involvement in the Economy
Government corruption and collusion
Examples
Government using private information to gain profit
Waste and inefficiencies
Good jobs and good security can lead to laziness, tax dollar a re paying for their salaries.
Promoting a Stable Market
What is a monopoly?
A monopoly is when a company or group has control over a supply or service of a product.
Example of a monopoly
AT&T
.
Why are monopolies bad?
Monopolies are bad because they cut out competition, companies with monopolies can set prices how they want, and there is less incentive to make better quality items.