Chapter 4 Flashcards
What are the six ways that government activities can affect business?
- Crown Corporations
- Laws and Regulations
- Taxation and Financial Policies
- Government Expenditures
- Purchasing Policies
- Services
What is National Policy?
A government directive that placed high tariffs on imports from the US to protect Canadian manufacturing
What are Crown Corporations?
- Companies that are owned by the federal or provincial governments
- Provide services that are not being provided by businesses
What is privatization?
The process of selling publicly-owned corporations
What is deregulation?
When the government withdraws certain laws and regulations that seem to hinder competition
Which four sources are laws derived from?
- The Constitution
- Precedents
- Statutes
- Administrative agencies
Name 5 things that the federal government is responsible for?
- Trade regulations
- Incorporations of federal companies
- Public debt
- National defence
- Unemployment
What does a marketing board do?
Control the supply or pricing of certain agricultural products
- Gives stability to parts of the economy that are normally volatile
Name 5 things that the provincial government is responsible for?
- Natural resources
- Direct taxation
- Property law
- Education
- Administration of justice
What do taxes do?
How all levels of government redistribute wealth and allows them to discharge legal obligation
Where are taxes gathered from?
Income (largest source), sales and property
What is fiscal policy?
The federal government’s effort to keep the economy stable by increasing or decreasing taxes or government spending
What is a deficit?
When the government spend more money than it gathers for a specific period of time
What is the national debt?
The accumulation of government surpluses and deficits over time
What is a surplus?
An excess of revenues and expenditures
