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Role of The Government in The Economy, Ensuring the Safety of a Consumer -…
Role of The Government in The Economy
Promoting a Stable Market
A monopoly is when one person or corporation controls the distribution of resources.
A monopoly is bad because there is only one point of access, and if the resources from them are hindered, then you cannot get any form of product produced. The company also has full control of whatever it wants to produce with the resources provided.
An example of a Monopoly is De Beers, which held almost all the harvesting, distribution and production of diamonds, therefore increasing the price of the gems. Which in turn made us consumers have to pay more.
Environmental Protection
The reason for environmental protection is to promote biodiversity, protect animal life, allow for ecosystems to flourish, and to in general care for Gods creation.
An example would be the clean fuel regulation trying to limit climate change and the effect that it has on our ozone layer.
Labor Laws
Labor laws are the laws and regulations put into place so workers wouldn’t be over worked. It ensures the safety of the worker and they allow the employer to not overwork their employees.
Labor laws are important so our labourers don’t become harmed. If there are no labourers there will be no production of goods or services. The economy will fall. They are important to you as well because if we did t have labor laws you may be in serious health risks every day.
Prevent Price Fixing
Price fixing is when two companies set the price for a specific item they both sell. An example would be if two people sold lemonade and the both agreed to set the price to 50 cents that would be price fixing.
The Competition Bureau Canada sets rules and regulations so that competition can thrive throughout the market so There will be no price fixing.
Drawbacks of the Involvement of the Government in the Economy
The drawbacks is that the government will always want more money. They will do almost whatever they can to allow themselves to have money control and power. This in state gives them opportunity to raise taxes for publicly funded businesses. And they also will waste resources.
The government uses plastics, continues in the production of methane gasses, and they waste nuclear energy throughout nuclear plants. This inturn allow the money we put in to go to waste. The government also takes time to pass laws are even provincial agreements. This means things get don slower.
Crown Corporations
Crown corporations are organizations that are fully operated by the government. They operate like companies providing various goods and services. They exist to provide help and to form goals that the government has set. They also provide a lift up towards failures in the market
Examples would consist of: Canada post, CBC, and other provincial reasources you may have in alberta.
Ensuring the Safety of a Consumer
The role of Health Canada is to regulate pharmaceutical exports and products. It helps the Canadian health act and encourages innovation in the Medicare field.
The CSA’s role is to protect investors and consumers by putting rules and regulations in place. They also protect and collaborate the market.
Product recalls have the pourpose of ensureing the consumer doesn’t get harmed. If the product fails to pass safety protocols or fails in the legality realms it will be recalled for safety of the consumer.