Please enable JavaScript.
Coggle requires JavaScript to display documents.
The Role of Government in the Economy - Coggle Diagram
The Role of Government in the Economy
Drawbacks of government
involvement in the economy
Forms of
government corruption
vary, but can include bribery, lobbying, extortion, cronyism, nepotism, parochialism, patronage, influence peddling, graft, and embezzlement.
According to economic theory, an
inefficient market
is one in which an asset's prices do not accurately reflect its true value, which may occur for several reasons. Inefficiencies often lead to deadweight losses.
Environmental Protection
Why it is important:
It gives us clean air, water, food, materials and space for recreation. Spending time in nature is good for our mental health. And if we do not take care of the planet, its climate and ecosystems, we undermine how our societies function, worsen our lives and, perhaps most directly, harm our own well-being.
Some examples of environmental elements that organisations need to comply with are;
Toxic release inventory.
Storm water permits.
Waste management.
Release of fumes into environment.
Safe drinking water.
Clean air requirement.
Wildlife and plants.
Forest resources.
Labour Laws
Labour laws, labour code or employment laws are those that mediate the relationship between workers, employing entities, trade unions, and the government.
Compliance with labour laws ensures that employees' rights are protected. These laws provide guidelines on fair pay, working hours, and safe working conditions, among other things. By adhering to these laws, businesses can ensure that their employees are treated fairly and equitably.
Prevent Price Fixing
Price Fixing
involves an agreement by competitors to set a minimum or maximum price for their products. For example, electronics retail companies may collectively fix the price of televisions by setting a price premium or discount.
Under the
Competition Act
, it is a criminal offence to engage in an illegal agreement. Anyone convicted of participating in bid-rigging, price-fixing, allocating markets, restricting supply, wage-fixing or no-poaching agreements will have a criminal record.
Ensuring the Safety of the consumer
Health Canada
regulates specific products and controlled substances and supports innovation and information sharing in Canada's health system to help Canadians maintain and improve their health.
As a recognized medical device testing and certification service provider,
CSA Group
enables manufacturers to demonstrate that their medical products comply with the applicable standards and processes, allowing you to sell your medical devices in markets around the world.
A
product recall
is the process of retrieving defective and/or potentially unsafe goods from consumers while providing those consumers with compensation. Recalls often occur as a result of safety concerns over a manufacturing defect in a product that may harm its user.
Crown Corporations
What are they and why they exist
: Wholly owned federal or provincial organizations that are structured like private or independent companies.
Examples:
The Canadian Broadcasting Corporation (CBC), VIA Rail, Canada Post and the Bank of Canada; as well as various provincial electric utilities.
Promoting a stable market
Monopoly:
This refers to a market structure where there is only one seller of a product or service. In a monopoly, the single seller has significant control over the supply of the good or service and can influence prices. This lack of competition often leads to higher prices and lower quantities of goods or services produced compared to a competitive market.
Why monopoly is bad:
Besides increasing prices, the monopolist can use its power and position to coerce suppliers and customers not to do business with any company that dares to try to compete with it, or to extract major price concessions from a supplier, impacting the supplier's bottom-line
Example
:Public utilities: gas, electric, water, cable TV, and local telephone service companies