Exam 9: Section 5: The Leadership Challenge

A major criticism of subsidies is that they create barriers and unfair competition

According to the Fraser Institute, there is a great deal of evidence showing that government assistance to business leads to widespread economic growth and job creation.

Assisting private business by way of bailouts and subsidies is an example of government as guardian of society

Government's role as business owner includes the necessity to protect industries that are deemed to be vital to the economy

The highest level of government that governs all Canadian citizens, residents and others across Canada is the Ministry of Defence

Imperfect competition occurs where there are many firms that produce an indistinguishable product or serve that no single producer has the power to affect the price of that product or service

Part of the government's aim in offering assistance to business is to encourage innovation

Regulation is aimed at correcting market failures and inequities that may arise for a variety of reasons, including the case where insufficient competition exists in an industry

An example of a restrictive tax is the Harmonized sales tax (HST)

The government of Canada is organized into three levels of government: Federal, Provincial/Territorial and municipal