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The Role of Government in the Economy - Coggle Diagram
The Role of Government in the Economy
Promoting a stable market :
Monopoly is when a company or group has complete control over the supply of a product or service.
Monopolies are a bad thing because they cut out competitions, they can set the price they want, and theres less incentive to create a better quality product.
De Beers Consolidated Mines who once controlled a majority of the market for diamonds.
Ensuring the Safety of the consumer
The role of Health Canada is they set regulations for companies that produce goods for human consumption.
The role of CSA ensure that products meet industry standards for safety.
A Product Recall allows the consumer to have their purchased good repaired for free or get a refund in case the product they purchased are not safe or there is a problem.
Environmental Protection
Environmental Protection are important because companies and businesses just cares about the profit and might pollute the environment.
Forestry Companies who usually harvest trees from public or ´crowned´ land. They need to pay to have the land re-planted with trees to ensure the sustainability of our forest.
Labour Laws
It protects the worker and the employer rights.
It conducts workplace inspections and investigates workplace accidents and injury that protects the people in the workplace.
Crown Corporations
They are wholly owned federal or provincial organizations that are structured like private or independent businesses.
CBC, they are completely funded by the government and creates 100% Canadian content.
Preven Price Fixing
It is enforced under the Competition Act that serves to promote competition and ensure the best prices for the consumers.
Competition Act
Drawbacks of government involvement in the economy
It is against the law for government officials gain profit from using private information, it is also called insider-trading.
An example is a group of US senators sold a significant part of their stock portfolio after a private briefing about the damage COVID-19 brought to the stock market.
Government employees are sometimes well paid and have a good job security.Because of this some employees becomes lazy and not efficient to their job.