Chapter 1 Flashcards
How is evolving the proportion of young families that have a debt.
It is increasing
What sector is becoming more and more important in modern economy
The service sector, in 2020 it represented approximately 79 % of employment
In economics, how can we calculate the total production of a country ? Give the formula.
By looking at the GDP (gross domestic product) :
GDP = C + I + G + X + M
In Canada what represent the majority of the GDP
Private consumption ( C) which represent 58% of Canadian GDP,
What is conspicuous consummation ?
Believing that the act of consuming brings a particular social status ( synonym of successful life) and becomes a form of leisure and family activity.
I buy therefore I am
Why do we consume
To respond to our wants
What is economics according to miller ?
A social science that studies how people allocate their resources to satisfy their unlimited wants.
It is concerned with how individuals, groups and societies respond to the economic problem of scarcity.
How can economics help us
It can help us understand the limits in the achievement of our wants
Why should we discern needs and desires
We have unlimited wants and limited ressources. This scarcity forces us to make choices between our needs and our wants.
What is a need
A necessity, what was can’t live without.
What is a desire
Something we wish for but that is not necessary
What can needs and desires depend on ?
They often depend on our situation and where we live.
How to differentiate between needs and desires ?
We can establish a priority order (1,2,3 system):
1- necessary things to satisfy our basic needs such as food, clothing, apartment etc.
2- important but non essential things such as a buss pass or bicycle
3- non important and non essential things such as popcorn when we go to movies, new music download, new video games, etc
Maslow hierarchy of needs from bottom to the top ( more important yo less important)
- Physiological needs such as eating, drinking, sleeping and breathing
- safety such as body, job, health, house
- love and belonging such as friendship, family and intimacy
- self-esteem, confidence, achievement, respect of others and respect by others
-Self actualization
Maslow’s hierarchy of needs
1) Physiological needs: Linked to the survival of the individuals.
2) Security needs: Linked to our desire to have a tomorrow.
3) Needs for love and belonging: Linked to social integration.
4) Self-esteem needs: Linked to the need for respect of self and respect to and by others.
5) Needs of self-actualization: Linked to feeling of accomplishment
What is the primary goal of a firm
Profit
what is the major aspect of our economy
Consumption
what is planned obsolescence.
businesses voluntarily reduce the life-span of their products to force consumer to buy more often
what are three ways firms use to increase the sales of products
1, building in way which makes a product break more often (Planned obsolescence
2. Changing the design (fashion) to make the consummer feel ridiculous if he uses the outdated product (psychological obsolescence)
3. Changing the technological configuration (ex: from DVD`s to Blu-Ray)
how can we become a responsible consummer
By making ecological, sustainable and equitable choices
however, expect to pay more
what are the forms of responsible consumption
- Local agriculture: Purchase food made in Quebec helps the local producer and reduces pollution as there is less transports involved.
- Organic agriculture: This respects the nature (soil, plants, animals). There is no chemical pesticides, no growth hormones, no GMO (genetically modified organism). It employs more natural production techniq
c) Fair trade
What is fair trade
A product is considered fair trade by the world fair trade organization if:
1. it creates opportunites for economically disadvantaged producers
2. It is transparant and accountable
3. fair trading pratices
4. Fair payment
5. ensures no child labour or forced labour
6. Commitment to Non Discrimination, Gender Equity and Women’s Economic Empowerment, and Freedom of association
7. ensures good working conditions
8. provides capacity building
9. promotes fair trade
10. respect the environment
why are cooperatives useful
- The main objective is not to make profit but to help their members with their purchases (plus grand pouvoir d’achat)
- The members are owners
- One member = one vote
- They usually reinvest a lot in society
Ex: Desjardins, agropur
What is voluntary simplicity
lifestyle that minimizes consumption and the pursuit of wealth and material goods. Individuals choose voluntary simplicity in order to attain a simpler but more meaningful life.
It is voluntary, not forced.
