Crown Corporation

1. Create a three column table labelling one column for each level of government in Canada. In each column classify the following services according to which level is responsible for them. highway repairs family allowance payments street repairs hospitalization fire protection defence education garbage collection pollution control customs and immigration parks and recreation agriculture Federal
Provincial
Municipal
Defence
Education
Garbage collection

Highway repairs
Pollution control
Hospitalization
Street repairs
Parks and recreation
Customs and immigration
Family allowance payments
Fire protection
Agriculture and agri-food

2. What advantages are there for the consumer in having public utilities owned and operated as Crown Corporations?
Most of the Crown Corporations are designed to meet the public needs, especially transportations. Since some of the private sectors are unable to provide those public needs, government has to open up some corporations to meet the needs. The price of the Crown Corporations is controlled by the government. The price, therefore, will be reasonable to meet the basic needs of the consumers. Price discrimination will not exist because the government will control all the supply and decide the price.
3. What is the Bank of Canada? What
responsibilities does it have in the economy of Canada?
The Bank of Canada was initially launched as a private corporation.
In 1938, it was legalized as a federal Crown Corporation. The role of Bank of Canada is to promote economic growth and financial well-being. The Bank of Canada shares responsibilities such as monetary policies, financial systems, currency, and funds management. The objective of monetary policies is to preserve the value of money, by keeping the inflation low. The financial systems provide banking systems, provide liquidity to the system, and give government financial information. The Bank of Canada designs, produces, and issues the bank notes. The Bank of Canada acts as a fiscal agent for the
government.
4. What is the difference between public and private goods?
For public goods, individuals’ consumption of the goods does not affect other individuals’ consumption, since individuals will not be able to use up the public goods. Individuals cannot prevent other individuals from consuming certain public goods. There will be no marginal cost of adding one more consumer into public goods.
For private goods, individuals’ consumption of the goods will affect other individuals’ consumption, since the quantity of the goods is limited. Individuals can prevent others from using or buying certain private goods.
5. What are transfer payments and why are they necessary?
The definition for transfer payments is payments that are made without any exchange of goods or services. Common transfer payments include financial aid, social security, and subsidies. In administrative use, transfer payments are used as payments from one order of the government to another order.
First of all, transfer payments are very necessary because they deliver enough money to municipal or provincial governments to make sure that they have enough money to operate and provide services to people.
Secondly, transfer payments will enable the provincial government to do things that the federal government demands.
Lastly, financial aids and subsidies will support the people and businesses that are not functioning very well.