Section Two The Role of the Commerce Commission The role of the Commerce Commission is to promote competition in the New Zealand economy. Consumers reap maximum benefits from markets that are dynamic and goods and services that are offered at competitive prices. In the case of allocative efficiency, the market uses resources efficiently to produce goods and services that satisfy consumer preferences. The Commerce Commission ensures allocative efficiency by encouraging fair competition and discouraging anti-competitive business practices. In addition, it ensures that no single producer controls market prices. For instance, it prohibits price fixing tactics and abuse of market position by businesses. In so doing, the Commerce Commission ensures …show more content…
A household refers to a collective entity comprising of a group of people living in a common residence whereas a firm is an entity that produces goods and services with the aim of making a profit. An example of a firm is TSB Bank that offers financial products and services to the New Zealand population. TSB Bank and New Zealand households can interact through two different ways. The first interaction is through economic resources such as land, labour, capital and other resources while the second interaction occurs through the flow of money that provides income to households. Households supply TSB Bank with economic resources in exchange of income and the households use the income to purchase TSB Bank financial products and services. The circular flow model enables money and economic resources to move from households to the bank and vice …show more content…
The phases include contraction, trough, expansion and peak. At the moment, the New Zealand economy is at the expansion phase. The expansion phase is characterized by economic growth and expansion as well as positive GDP. In the second quarter of 2015, the New Zealand economy recorded positive growth following the recovery of the agriculture and mining sectors. GDP for the second quarter of 2015 grew by 0.4 per cent (“Economy still growing”, 2015). In addition, household spending increased by 0.9 per cent while business investment increased by 2.2 per cent. On a yearly basis, the GDP grew by 2.5 per cent implying that the New Zealand economy is slowly recovering from recession (Hall, & McDermott,
This essay will examine key aspects of the recent implementation of the Australian Consumer Law (ACL) 2011, which is the largest overhaul in Consumer Law in Australia in the past twenty five years. The ACL replaces 20 existing State and Territory laws into one national law , the legislation was enacted in two main parts as Schedule 2 of the renamed Trade Practices Act 1974 (Cth) (TPA) - Competition and Consumer Act 2010 (Cth) (CCA) . Aforementioned this essay it will outline the key benefits of the implementation of the act. Furthermore it will critique the Act, whilst exploring the objectives of the legislation.
Governments regulate businesses when market failure seems to arise and occur and to control natural monopolies, control negative externalities, and to achieve social goals among other reasons. Setting government regulations on natural monopolies is important because if not regulated, then these natural monopolies could restrict output and raise prices for consumers. It is important to regulate natural monopolies because they don’t have any competition to drive down the price of the product they are selling. Therefore, with no competition, they can control the output and the price of the product at whatever they deem necessary. With regulations the government keeps it fair both for the consumer and producer. It’s also important for government
The Joint Commission is an independent non-profit organization that accredits and certifies more than 20,500 health care organizations and programs in the United States. The joint commission develops performance standards for accreditation programs that hospitals and other healthcare-related organizations are required to pass in order to receive accreditation from the Commission. The accreditation and certification provided by the commission is recognized nationwide as a symbol of quality that reflects an organization’s commitment to meeting certain performance standards.
1. Because the additional terms become part of the contract,In the battle of the forms, all additional terms become part of the contract unless they are promptly objected to, are material changes or are banned by the offer. Katie sent Phil a text asking him to pick up and deliver her new boots. Phil agreed but only if Katie agreed to go out on a date with him and Katie refused. These additional terms (the date) did not become part of the agreement because Katie refused Phil’s advancement.
restricting competitors of having an equal opportunity of the free market. This is all because
All companies are required by law to follow legal responsibilities. A company should acquaint itself with outer influences that administer the industry in order to function well. No company can be lucrative without its customers they are just as important as the employees if not more. The customers are the ones who bring success to these companies and at the same time give determination. Not all customers are contributors, some are unmannerly, possessive and some just try to get over on businesses. “Businesses have a role to play in improving the lives of all their customers, employees, and shareholders by sharing with them the wealth they have created” ( Bateman & Stair, 2006, p. 175).
The leakages in the circular flow are the money is the money that households are
Over the past five years the Australian economy has gone through many changes experiencing both the peaks and troughs associated with business cycle.
Although it encourages a fair chance to our native Canadian producers, “the result is a less efficient use of world agricultural resources” (McConnell, Brue and Flynn, 2012). A similar response is outlined in the Cocktail Party Economics textbook, relating to the milk industry; “There are stiff tariffs on imported milk, and foreigners don't really sell in the milk market.. This is good for dairy farmers but not so good for society” (Adomait and Maranta, 2012). That system is referred to as the Supply Management System, where native producers are allowed to monitor the price and supply of their goods. The supply management system is an example of a governmental intervention as it is a cartel which permits Canadian producers to sell their goods for a higher price when compared to a free market price. “Cartels are groups of producers that agree to not exceed certain production quotas in order to keep market prices up” (Adomait and Maranta, 2012). “These farm cartels continue to exist because the government imposes trade restrictions on these particular foodstuffs and enforces strict food safety laws.” (Adomait and Maranta, 2012). The supply management system is endorsed by native producers, however when compared to a market policy, it does not bring advantage to consumers and thus reducing
In conclusion, regardless of Macropoland’s current economic condition, it is fair to say that it is all part of the business cycle. The business cycle has three parts: peak, trough, and peak. The peak is the date that the recession starts. In Macropoland’s case, the peak would be at the beginning of 1973, its trough somewhere between 1973 and 1974, and then its peak again at 1974. In the second scenario, Macropoland is either at its trough, where it is about to head up again because of its low inflation rate, or it is at its expansion, on its way to heading to its next peak.
In the case of Australian Competition and Consumer Commission, mainly focused in to the protection of small business groups in Australia, from the predatory pricing strategy and the ACCC have a support of law Trade Practices Act 1974. But the issues is concerned with the power of ACCC to make changes in the policy of anti-competitive behaviour, according to ACCC, they are so many companies who are using the market power in the negative way, so it has to be reduced with the support of law and other agreements, but still ACCC not received any positive sign from the court and government. And in the case of Australian Competition and Consumer Commission (Samuel 2004), they are also facing serious issues with legislative responsibilities. Every organization has the responsibility to disclose the financial matters to the consumers in the accurate and reliable way, but the power of Australian Competition and Consumer Commission to implement and force the companies to perform the function, is not granted in a proper way. On other hand, Australian Prudential Regulation Authority, they are facing the issues with related to the lack of manpower to solve the legal issues (Bailey 2003), and taking actions for protecting the companies from financial losses in an effective way (Moullakis et al 2004). Australian Prudential Regulation Authority failed in different times to protect the companies from the structural issues and financial
Though this economic expansion has been the longest since World War II (according to the New York Times, October 18, 1998), growth during the 1990’s has been weaker than during any growth cycle since the end of the war.
Hayes, M. & Moore, G.,2005. The Economics of Fair Trade: a guide in plain English [online]. Newcastle Fairtrade Partnership. Available at: [Accessed 11th December 2013]
1. In general, how did C&C’s first organizational structure contribute to the store managers’ dissatisfaction? C & C Grocery’s initial organizational structure operated under a vertical linkage. Vertical linkage is utilized to “coordinate activities between the top and bottom of an organization and are designed primarily for control of the organization” (Daft,2013)
As Americans we want and need things in order to survive or to live life to the fullest. Our society ensures that our needs and wants are met. How do we make sure that we produce what we need and that those goods are distributed fairly? We do this by understanding the Circular Flow Model chart. According to Business Dictinary.com, the Circular Flow Model “is a simple economic model illustrating the flow of goods and services though the economy. In the model, producers are termed as "firms" while consumers are referred to as "households." Firms supply goods and services while households consume these goods and services. Factors of production (land, labor, capital) are supplied by the household to firms and the firms convert