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Roles of the Government in the Economy - Coggle Diagram
Roles of the Government in the Economy
Prevent Price Fixing
The Consumer Protection Act is what prevents businesses from price fixing.
Price fixing is the maintaining of prices at a certain level by agreement between competing sellers.
Crown corporations
Crown corporations are a federal or provincial organization that are like privately owned companies
Examples are: Canada Post, VIA Rail, Bank of Canada, and CBC
Labour Laws
They stop workers from being mistreated by setting minimum wages, and stopping child labour.
they govern collective bargaining and industrial relations among employers, their unionized employees and trade unions.
drawbacks of government involvement in the economy
Some examples of government corruption and collusion could be lack of incentives, political pressure groups, and more.
Some wastes and innefficiencies could be consumers not wanting to purchase things, and the inefficiency could be the producers not making things efficiently.
Monopolies
A monopoly is when a company or one person has full power/control over something.
They are bad because it means that the company with a monopoly gets full control over the price and supply of something, which means they can drive up price as much as they'd like.
An example of a monopoly is the Disney Company.
ensuring the safety of a consumer
The role of Health Canada is to help Canadians improve and maintain health
A product recall is the consumer being able to return a product back to the producer for safety reasons.
The role of CSA is to ensure customer service and focus on each customers individual need.
Enviromental protection
Environmental protection refers to any activity to maintain or restore the quality of environmental media through preventing the emission of pollutants or reducing the presence of polluting substances in environmental media.
An example of enviromental regulations on businesses could be managing business waste for recycling by separating paper, card, plastic, metals and glass prior to collection. Most food businesses also need to separate food waste for recycling.