BU111 Study Guide - Final Guide: Absolute Advantage, Comparative Advantage, New Idea
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BU111 Full Course Notes
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Government is sometimes the most important customers ware guns and tanks, fighter jets. If your business specializes in this, the government will be your only customer, as the average citizen does not need these items. Government can be a competitor since they have the brand loyalty". Achieve social goods universal health care, education. Protect the environment canada water act; fisheries act. Tried to investigate collusion in order to protect consumers. (collusion joining together of businesses and picking one price in order to maximize profit). The government will pick the social standard that benefits consumers. As a customer buys products and services. As a provider of incentives and financial assistance circular flow of income. As a provider of essential services highways, armed forced, police and fire department, hospitals, education. Progressive tax depends on level of income received. Sales tax no relation to your income. Subsidies an opportunity for the people within the field.
