Chapter 6 Flashcards
Economics is about what to ______, _______, ____, _____, and ____, and how to respond to different people in society.
Create grow eat sell buy
Canada’s major economic partner is?
United States
What does this chapter explore?
The values that shape these economic systems, how they are different, and how they are the same
According to your textbook, what are two things that are included in the price of goods?
Cost of shipping
manufacture
As a consumer, you are part of Canada’s _________.
Economy
What are the three components of the economic principle of scarcity?
Land
labor
capital
Give one example of a need that is generally unlimited?
Air
What are things that are limited?
Gold
Why are most of the things that people want limited?
Resources are limited
In economics, resources include
Money, labor and materials
Resources that are limited are called?
Scarcity
The basic question in economics is?
How to solve the issue of scarcity
What are three questions that have to be answered to solve the issue of scarcity?
What is needed or wanted?
How will it be produced?
Who will get it?
The ___________ we make about these questions create issues that affect our _____________.
Decisions
quality of life
What are the three basic ‘factors of production?
Land
labor
capital
Land consists of
All of the materials found in the natural environment
Labour consists of
The physical and mental effort needed to produce goods and services
Capital consists of
The money people own or borrow
An economic system is
Is a way to solve the basic problem of scarcity
What is meant by the word dynamic in describing an economic system’s place on the continuum? /3
Characterized by continuous change, activity, or progress
Where is Canada and the US on the Economic Continuum, respectively?
Mixed/Market
Name the three types of economies on the Economic Continuum.
Planned/mixed/market
Does Canada have more or less government involvement than the US?
More
In this kind of economy, the government makes all of the decisions about how to solve scarcity.
Planned economy
In this kind of economy the individual solves the issue of scarcity.
Market economy
Canada’s economy is a mixture of government control and private ownership. What kind of economy is this?
Mixed
Three characteristics of a Planned economy are
• Resources are publicly owned. • Government makes decisions on how to use resources. • consumers have little influence on economic decision-making.
Three characteristics of a Mixed economy are
Some resources publicly owned, some private.
individuals and govt. both make decisions about what to produce
consumers and govt. influence economic decision-making.
Three characteristics of a Market economy are
Resources are privately owned
individuals make the decisions on how to use resources
individual consumers drive economic decision making by choosing what to buy
On page 205 which of, ‘The Public Good and Cooperation’ would represent which country? The US or Canada?
Canada
Canada’s founding principle is
“peace, order, and good government.”
What does Canada’s founding principle reflect?
The idea of cooperation.
connects to an agreement between Francophones and Anglophones
With Canada’s economic system the government makes decisions
On behalf of everyone
Does Canada have a mixed economy because?
Of the role, government plays, and individuals still own private property
Give 2 examples that gave the government a larger role in the economy.
(Canada)
Publicly funded health care
pensions for seniors
Give 3 examples of reduced government involvement in the economy.
(Canada)
Cut govt. spending
privatized crown govt. corporations
NAFTA (increasing the influence of the market in shaping Canada’s economy
What is a Crown corporation?
Company-owned by Canada’s government that provides products and services to Canadians.
Why do economists say that Canada has a mixed economy?
Because of its crown corporations
What is the founding principle of the United States?
“life, liberty, and the pursuit of happiness.”
What does America’s founding principle reflect?
The idea of individualism
It connects to the roots of the U.S. as a colony of Britain, and fought for individualism.
What does the U.S. generally value?
Individual economic decision making
The kind of economy that the U.S. is said to have is?
A Market economy
Three examples of more govt. involvement is?
America
Pensions for seniors
funds to support farmers
corporations funded and run by the govt.
Two examples of reduced govt. involvement is?
(America)
Reduced govt. spending
reduced govt. regulation of corporations
What is important to both the market and mixed economies?
Individual choices of consumers are an important economic force
What is a state of equilibrium?
The supply of a product can meet the demand for the product at a particular price
If Demand goes up, what happens to supply?
Supply drops
If the price goes up, what happens to demand?
Demand goes down
What happens when the supply goes up?
Price drops
What is a local example for #48?
Alberta gas prices
What is competition trying to do?
Get consumers to buy their product
What is the opposite of competition?
Monopoly
Why do governments sometimes create monopolies? Name some examples.
To provide essential services that require expensive infrastructure
Canadian Wheat Board, electricity, water
The governments get involved in market economics because?
To inform, protect or ensure good practices
What are some laws that came about to protect public health?
Laws requiring products such as food and cosmetics to carry labels listing ingredients
Why do consumers pay a tire tax when they buy tires?
The tax helps pay for recycling the tires, so they don’t go to landfills.
Recyclers make them into useful products.
Why do governments have laws to ensure that there is the competition?
So that businesses do not ‘fix prices’
Where does the money for education come from?
Taxes
What is one kind of industry receives support from Canada’s government?
Cultural industries such as films
Why do you think Canada supports Canadian films, art, etc.? /3
As a smaller country next to a large one that produces many films, etc., our culture could suffer and lose its identity without some help in the form of govt. support.
Without support what might happen to Canadian films. Books, magazines, and books?
no one would make them because Canadian audiences are small
Which 2 provinces have the lowest unemployment rate in 2013?
Alberta and Saskatchewan
What is a strike?
A stoppage of work by unionized employees
Why do employees sometimes strike?
To pressure employers to respond to issues that concern workers
Name 5 parts of Canada’s economy that have unions.
Transportation, education, health care, forestry manufacturing
What does Canada have as a result of labor unions? What do labor laws do?
Labour laws
set standards for wages, hours, safety, etc.
On page 232, as a result of labor laws what can employers no longer do?
Employ children full time and
or in dangerous jobs
Unions _________ the power of __________ and the __________.
Balance
employers
economy
Labour laws?
Recognize the rights to workers
Name two negatives to have unions.
Price the workers right out of a job
move businesses out of the country
What does historical context do?
Historical context concerns events, and accepted values and attitudes, that shape responses to issues
When did the Winnipeg General Strike occur?
1919
What made Canada’s government concerned at this time?
Winnipeg General Strike
Russian revolution made Can. Worried about the potential power of workers’ unions
What protected collective bargaining in Canada?
Charter of Rights
What part of this document protects these rights?
Section 2 freedom of Association
economics:
the study of the production, distribution, and consumption of goods and services
economic system:
the way a society organizes the production, distribution, and consumption of goods and services
economy:
the resources and processes involved in the
production, distribution, and consumption of goods
and services
scarcity:
in economics, the idea that land (materials), labor, and capital (money) limit the supply of what people want and need
privately owned:
in economics, the part of the economy owned and
controlled by businesses and individuals
publicly owned:
in economics, the part of the economy owned and
controlled by the government and paid for by taxes
shift left:
a shift on the economic continuum towards more government involvement in the economy. A shift left is
usually described as taking a more liberal position.
shift right:
a shift on the economic continuum towards less government involvement in the economy. A shift right is usually described as taking a more conservative position.
consumers:
those who use products and services
demand:
the wants and needs of consumers for products and services
producers:
those who create products and services
supply:
the products and services created by producers
competition:
in economics, rivalry among producers to sell products to consumers
unemployment rate:
the percentage of the workforce that does not have jobs
strike:
a cessation of work by workers. Strikes pressure employers to respond to issues that concern workers.
collective bargaining:
negotiating as a group. Collective bargaining is the
key right established by unions for workers.
labor union:
an organization of workers that acts to protect workers’ rights and interests
What can economics affect?
The incomes people make, the jobs they have, and the taxes they pay to the government.
What was the via Rail:
The government of Canada owns Via Rail, which it created in 1971 to provide passenger rail service across Canada. Private railway companies in Canada had decided to cut their passenger services because they could not make a profit from them.
What do the things we own reflect?
what you value and your decisions about what to buy. what is available for you to buy, based on
how Canada’s economy allocates resources.
What are some factors that can limit resources:
The growing season in Canada and trade agreements with other parts of the world.
In economics, the idea that resources are limited is called….
Scarcity
What does land consist of:
all the materials found in the natural environment needed to produce goods and services, such as renewable resources (e.g., trees, raspberries) and non-renewable resources (e.g., oil, gold).
What labor consists of example:
(e.g., agricultural workers to
produce foods, servers to staff
restaurants).
What does capital consist of:
that people own or borrow, used to purchase equipment, tools and other resources to produce
goods and services.
An economic system’s position on the continuum is…..
dynamic, and depends on the underlying values of a society and its government.
What is Planned Economy:
-An economy where the government makes all the decisions about how to solve scarcity.
-It owns and manages the resources needed to produce things.
-It plans what will be produced and decides how to
use limited resources.
What is a Mixed Economy:
-A mixed economy combines private ownership and government control.
-For example, private businesses own some
resources and the government owns others.
-In mixed economies, the level of government
involvement fluctuates depending on what political party is in power.
What is a Market Economy:
- the choices of individuals solve scarcity.
- Private businesses own and manage resources.
- They sell their products to consumers, who make their own decisions about what to buy.
- Businesses succeed if they produce what consumers want. Otherwise, they fail. The government does not get involved.
public good:
what’s best for society as a whole.
The Public Good and Cooperation:
Some people believe that individuals
must consider each other and set
aside from their individual interests to
achieve what’s best for society.
The Public Good and Cooperation: what do they value:
values equity: responding
to others in a way that recognizes
their needs and circumstances.
The Public Good and Individualism
Some people believe that what’s
best for each person individually
adds up to what’s best for society.
The Public Good and Individualism: what do they value:
values individual creativity and independence.
How does the idea of cooperation affect Canada’s economic system?
For example, government plays an important role in the economy, making decisions on behalf of everyone.
Is Canada’s position on the economic continuum static?
It shifts left and shifts right depending on the political party that forms the government.
When did Canada shift left on the continuum?
-Lester Pearson became prime minister of Canada in (1963-1968) when the Liberal Party of Canada won an election and formed a minority government.
-To stay in power, the Liberals cooperated with the New Democratic Party.
-This resulted in legislation that gave the government a
a larger role in the economy,
When did Canada shift right on the continuum?
- When Brian Mulroney became prime minister in (1984-1993) as leader of a majority government of the Progressive Conservative Party of Canada.
- took steps to reduce government involvement in the economy,
What’s a Crown corporation?
A Crown corporation is a company owned by Canada’s government to provide products and
services to Canadians.
reasons for the government to create Crown corporations include:
- To provide essential services.
- To promote economic development.
- To support Canadian culture and identity.
Examples of Crown Corporations in Canada:
- Air Canada
- Petro-Canada
- Radio-Canada.
How does The idea of individualism influences the economic system of the U.S.?
For example, the U.S. generally values individual economic decision-making, with little involvement of the government.
Why is the US said to have a market economy?
-because of its emphasis on the role of the individual, versus the government, in economic decision making.
Does The position of the U.S. on the economic continuum stay constant?
economic continuum shifts right and
left, depending on the political party that forms the government.
When did the U.S. on the economic continuum shift to the left?
Franklin Roosevelt became president of the United States in 1934, during a worldwide economic crisis called the Great Depression.
- Pensions for senior citizens.
- Funds to support farmers.
- Corporations funded and run by the government. These created jobs and built projects to strengthen the economy, such as dams and roads.
How are Mixed and market economies similar?
systems, the individual choices of consumers are an
important economic force.
What is the difference between market and mixed economy:
-In pure market economies, consumer choices drive all economic decision-making.
-In mixed economies, they drive a lot of economic
decision making.
This section investigates the mechanisms — or
principles — of market economics, including:
- Supply and demand.
* Competition.
How do Supply and demand affect the quality of life?
because they affect the prices of products we buy, the availability of products, and jobs connected to creating products.
What is supply about:
Supply is about producing things people want. It involves producers.
What is demand about:
Demand is about what people want. It involves consumers.
When demand for a product goes up:
it means more and more consumers are buying the product.
As consumers buy up the product,
the supply — or availability — of the product drops.
As the supply of the product drops:
This drives up the price of the product, because
more consumers compete for the limited supply available.
When the price of a product
goes up,
fewer consumers
can afford to buy it.
When fewer consumers can afford to buy it.
This drives down
demand for the product.
When the demand for the product is driven down (This drives down demand for the product.)
so the supply — or availability of the product — goes up.
When the supply of a product goes up,
producers cut prices to encourage consumers to buy more.
The lower price encourages consumers to buy more,
so demand for the product goes up.
How do producers tend to make supply, demand and price stable over time:
producers want to supply as much of a product as consumers will buy, at a price that allows producers to make the most profit possible.
What is competition about:
Competition is about producers striving to get consumers to buy their products.
How do Producers attract consumers?
through different prices and product quality,
What factors can affect competition in an economic system?
- the values of consumers
- decisions by government to become involved in decisions about supply and demand.
Who are mall shops owned by?
decisions by government to become involved in decisions about supply and demand.
When does a monopoly happen:
-decisions by government to become involved in decisions about supply and demand.
Why is the Canadian White Board considered a monopoly?
- decisions by government to become involved in decisions about supply and demand.
- This means the Wheat Board sets the price of wheat — the price is not set by competition among wheat growers or their customers.
What is The purpose of the Wheat Board?
The purpose of the Wheat Board is to protect wheat growers from low market prices.
Does the government prevent monopolies
and restore competition among producers?
Yes in some cases.
for example, Microsoft Corporation had to adjust its software product Windows to allow compatibility with browsers. (in United States)
Why do some countries have laws requiring products,
such as foods and cosmetics, to carry labels listing
ingredients.
These laws often came about because of
lobbying by groups concerned with public health
and safety.
Governments have laws to
ensure competition among
producers, such as oil and
gas companies. WHY?
Because of competition, many producers
offer products for the same price. It’s illegal for producers to “fix prices” — agree among themselves on what to charge for a product they all supply.
What is the objective of the Competiton Act
“maintain and encourage competition in Canada in order to… provide consumers with competitive prices
and product choices.”
Where does education money come from in Canada?
from taxes. Governments often fund products and services they consider essential for the public good,
Canada Economy:
More government
United States Economy:
Less government
Why is Canada’s film industry important:
- It is one of the things that distinguishes Canada’s economy from the U.S. economy.
- Canada’s government provides grants to Canadian authors and publishers,
- The grants help publishers and authors cover their expenses.
- The grants often cover living expenses,
- Canada’s government promotes the development of the Canadian music industry through the Canada Music Fund.
- The Canada Council for the Arts provides support for the performing arts.
- Government grants come from taxes.
How is Canada’s film making industry different from America’s?
-Canada has government-supported organizations to
assist the Canadian film industry.
-United States, where government does not directly
support film companies.
What is Telefilm Canada/Téléfilm Canada?
-is a federal Crown corporation that promotes the development and promotion of the Canadian audiovisual industry.
-provides with funds and support
-role is to “foster the production of films, television
programs and cultural products that reflect Canadian society, with its linguistic duality and cultural diversity
-to ensure audiences see these products at home and abroad.
A spin off job is….
a job that can easily be affected if other jobs are closed.
Many factors can contribute to the wages and
working conditions of workers. For example:
- Unions influence the wages and conditions of unionized jobs. Not all jobs are unionized, however. For example, most retail workers don’t belong to unions.
- Labour shortages can drive up wages, as businesses compete for workers to fill jobs. Consider how this relates to the principle of supply and demand.
- Economic slowdowns can drive down wages, as companies cut jobs and pay less to workers to stay in business.
What was the winnepeg general strike?
A general strike is when workers in different sectors of the economy in a particular place — a city or nation, for example — organize to stop working at the same time.
in 2005 what did employers needed to do before hiring children?
Before 2005, employers needed government permission to hire children younger than 14 years of age.
Since 2005, they can hire children 12 years of age and older without permission.
The decision partly aimed to ease a labour
shortage in the restaurant business.
