Role of Government in Business - Chapter 4

Question 1

The 7 Government Activities that Affect Business

Answer 1

1. Crown corporations
2. Laws and regulations
3. Bank of Canada
4. Taxation
5. Gov expenditures
6. Purchasing policies
7. Services

Question 2

National Policy

Answer 2

Gov directive that placed high tariffs on imports from the US to protect Canadian manufacturing, which had higher costs

Question 3

State Capitalism

Answer 3

The combination of free markets and some gov control within the economic system of a country

Question 4

Crown corporations

Answer 4

Companies that are owned by the federal or a provincial government

Question 5

Privatization

Answer 5

The whole process of selling publicly-owned corporations

Question 6

Deregulation

Answer 6

The gov withdraws certain laws and regulations that seem to hinder competition

Question 7

What is the primary responsibility the fed gov is responsible for?

Answer 7

Ensure and support the country’s economic performance

Question 8

Marketing boards

Answer 8

Controls the supply or pricing of certain agricultural products. Consequently, they often control trade.

Designed to give some stability to an important area of the economy that’s normally very volatile.

Question 9

What is P3s or PPPs?

Answer 9

Public-Private Partnerships

Question 10

Public-private partnerships (P3s or PPPs)

Answer 10

A trend that we are seeing today by merging of public and private philosophies

Question 11

What is BoC

Answer 11

Bank of Canada

Question 12

Bank of Canada (BoC)

Answer 12

Federal Crown corporation, Canada’s central bank. Provides banking services on behalf of the fed gov; doesn’t offer banking services to the public

Question 13

Monetary policy

Answer 13

Management of the $ supply and interest rates.

Question 14

Money supply

Answer 14

The amt of money the BoC makes available for ppl to buy goods and services.

Question 15

Overnight rate

Answer 15

Interest rate at which major financial institutions borrow and lend one day funds among themselves

Question 16

Prime rate

Answer 16

The interest rate that banks charge their most creditworthy customers

Question 17

Transfer payments

Answer 17

Direct payments from gov to other gov or to individuals

Question 18

Equalization

Answer 18

The fed gov’s transfer program for reducing fiscal disparities among provinces and territories

Question 19

What are the 2 important departments of the fed gov that provide services to bus/consumers?

Answer 19

1. Innovation, Science and Economic Development Canada
2. Department of Foreign Affairs, Trade and Development / Global Affairs Canada

Question 20

NRC

Answer 20

National Research Council

Question 21

What is NRC

Answer 21

Federal agency that began in 1916. Reports to Parliament through ISEDC

Question 22

Industrial policy

Answer 22

A comprehensive coordinated gov plan to guide and revitalize the economy

Requires close consultation w business and labour to develop a program for long-term, sustainable industrial development

Question 23

Fiscal policy

Answer 23

The fed gov effort to keep the economy stable by increasing or decreasing taxes or gov spending. First half of fiscal policy involves taxation

Question 24

Deficit

Answer 24

If gov spending exceeds the amt gathered in taxes for a specific period of time

Question 25

Surplus

Answer 25

Reductions in the national debt have been the result of surpluses

Question 26

Federal budget

Answer 26

Comprehensive report that reveals gov financial policies and priorities for the coming year