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The Role of Government in the Economy - Coggle Diagram
The Role of Government in the Economy
Promoting a stable market
Why are monopolies bad?
Monopolies control the market in where they do business, Which means that they have no competitors.
What is a monopoly
A monopoly is when one producer controls all supply of a product or service.
EXAMPLE: If there was only one pizza shop in a city, and people wanted pizza, they would have to buy from that one shop. And because that is the only pizza shop, they can raise their prices as much as they want to.
Ensuring the Safety of the Consumer
Role of Health Canada
Health Canada regularly monitors the marketplace to verify whether consumer products comply with the CCPSA and do not pose a danger to human health or safety.
Role of CSA
A product goes through a certification process to verify that it has met the requirements that are outlined in standards or other recognized documents. These standards help ensure roducts and services meet minimum requirements for safety, performance and energy efficiency.
Product Recalls
Product Recalls generally include stopping all manufacturing, importing, distributing, advertising and selling the affected products, as well as communicating to consumers the actions they should take to prevent exposure to the danger posed by the affected product
Labour Laws
Why are they important?
They are important because they ensures that employees' rights are protected. These laws provide guidelines on fair pay, working hours, and safe working conditions, among other things. By following these laws, this makes sure employees get treated fairly.
What are they?
In every province, there are Labor Laws that protect workers and employer rights.
The Government ensures that employees have these rights:
Proper notice for termination
Limit on weekly work hours
Minimum wage
Mandatory breaks and rest periods
Youth labour laws
Right to refuse unsafe work
Etc
Environmental Protection
Why it is important?
Environmental Protection is important because it helps conserve habitats. If the environment is extremely polluted or damaged, the air quality can decrease, and our survival and other animals can decrease with it. Environmental damage can cause various natural disasters to happen.
What is an example of an environmental regulation on businesses?
CEPA creates duties for businesses if there is a release or a likelihood of release into the environment of a listed toxic substance that may threaten the health, safety, and welfare of humans.
Drawbacks of Government Involvement in the Economy
Waste and inefficiencies
Since government employees are often paid well, it can often turn some into lazy and ineffiecient people at their jobs.
What is Corruption and Collusion in Governmnet
Since government holds a lot of power, they can easily gain private information to gain money.
Example: a group of US senators sold a significant part of their stock portfolio after a private briefing about the damage COVID-19 would do to the stock market.
Crown Corporations
What are they and why do they exist?
Crown corporations are owned by federal or provincial organizations that are like private or independent businesses.
Other examples:
Canada Post
VIA Rail
Bank of Canada
While some are created to promote Canadian culture and identity.
Examples:
CBC
CRTC
Some crown corporations are created to satisfy a need that would any profit for a private company.
Others will sometimes sell a crown corporation to the highest bidder and privatize it.
Examples:
Air Canada
Petro Canada
Canadian National Railway
Preventing Price Fixing
What act protects consumers from companies price-fixing?
The Competition Act: Serves to promote competition and ensure the best prices for consumers.
What is it?
The government protects consumers by ensuring companies cannot fix their prices to be different from normal market prices. By doing this it keeps prices for goods and services to be fair and affordable
It happens when serveral similar companies agree to increase the prices of their goods or services to increase profit.