Chapter 6 Flashcards
1
Q
Economics is about what to ______, _______, ____, _____, and ____, and how to respond to different people in society.
A
Create grow eat sell buy
2
Q
Canada’s major economic partner is?
A
United States
3
Q
What does this chapter explore?
A
The values that shape these economic systems, how they are different, and how they are the same
4
Q
According to your textbook, what are two things that are included in the price of goods?
A
Cost of shipping
manufacture
5
Q
As a consumer, you are part of Canada’s _________.
A
Economy
6
Q
What are the three components of the economic principle of scarcity?
A
Land
labor
capital
7
Q
Give one example of a need that is generally unlimited?
A
Air
8
Q
What are things that are limited?
A
Gold
9
Q
Why are most of the things that people want limited?
A
Resources are limited
10
Q
In economics, resources include
A
Money, labor and materials
11
Q
Resources that are limited are called?
A
Scarcity
12
Q
The basic question in economics is?
A
How to solve the issue of scarcity
13
Q
What are three questions that have to be answered to solve the issue of scarcity?
A
What is needed or wanted?
How will it be produced?
Who will get it?
14
Q
The ___________ we make about these questions create issues that affect our _____________.
A
Decisions
quality of life
15
Q
What are the three basic ‘factors of production?
A
Land
labor
capital
16
Q
Land consists of
A
All of the materials found in the natural environment
17
Q
Labour consists of
A
The physical and mental effort needed to produce goods and services
18
Q
Capital consists of
A
The money people own or borrow
19
Q
An economic system is
A
Is a way to solve the basic problem of scarcity
20
Q
What is meant by the word dynamic in describing an economic system’s place on the continuum? /3
A
Characterized by continuous change, activity, or progress
21
Q
Where is Canada and the US on the Economic Continuum, respectively?
A
Mixed/Market
22
Q
Name the three types of economies on the Economic Continuum.
A
Planned/mixed/market
23
Q
Does Canada have more or less government involvement than the US?
A
More
24
Q
In this kind of economy, the government makes all of the decisions about how to solve scarcity.
A
Planned economy
25
In this kind of economy the individual solves the issue of scarcity.
Market economy
26
Canada’s economy is a mixture of government control and private ownership. What kind of economy is this?
Mixed
27
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.
```
28
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.
29
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
30
On page 205 which of, ‘The Public Good and Cooperation’ would represent which country? The US or Canada?
Canada
31
Canada’s founding principle is
“peace, order, and good government.”
32
What does Canada’s founding principle reflect?
The idea of cooperation.
| connects to an agreement between Francophones and Anglophones
33
With Canada’s economic system the government makes decisions
On behalf of everyone
34
Does Canada have a mixed economy because?
Of the role, government plays, and individuals still own private property
35
Give 2 examples that gave the government a larger role in the economy.
(Canada)
Publicly funded health care
| pensions for seniors
36
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
37
What is a Crown corporation?
Company-owned by Canada’s government that provides products and services to Canadians.
38
Why do economists say that Canada has a mixed economy?
Because of its crown corporations
39
What is the founding principle of the United States?
“life, liberty, and the pursuit of happiness.”
40
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.
41
What does the U.S. generally value?
Individual economic decision making
42
The kind of economy that the U.S. is said to have is?
A Market economy
43
Three examples of more govt. involvement is?
| America
Pensions for seniors
funds to support farmers
corporations funded and run by the govt.
44
Two examples of reduced govt. involvement is?
| (America)
Reduced govt. spending
| reduced govt. regulation of corporations
45
What is important to both the market and mixed economies?
Individual choices of consumers are an important economic force
46
What is a state of equilibrium?
The supply of a product can meet the demand for the product at a particular price
47
If Demand goes up, what happens to supply?
Supply drops
48
If the price goes up, what happens to demand?
Demand goes down
49
What happens when the supply goes up?
Price drops
50
What is a local example for #48?
Alberta gas prices
51
What is competition trying to do?
Get consumers to buy their product
52
What is the opposite of competition?
Monopoly
53
Why do governments sometimes create monopolies? Name some examples.
To provide essential services that require expensive infrastructure
Canadian Wheat Board, electricity, water
54
The governments get involved in market economics because?
To inform, protect or ensure good practices
55
What are some laws that came about to protect public health?
Laws requiring products such as food and cosmetics to carry labels listing ingredients
56
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.
57
Why do governments have laws to ensure that there is the competition?
So that businesses do not ‘fix prices’
58
Where does the money for education come from?
Taxes
59
What is one kind of industry receives support from Canada’s government?
Cultural industries such as films
60
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.
61
Without support what might happen to Canadian films. Books, magazines, and books?
no one would make them because Canadian audiences are small
62
Which 2 provinces have the lowest unemployment rate in 2013?
Alberta and Saskatchewan
63
What is a strike?
A stoppage of work by unionized employees
64
Why do employees sometimes strike?
To pressure employers to respond to issues that concern workers
65
Name 5 parts of Canada’s economy that have unions.
```
Transportation,
education,
health care,
forestry
manufacturing
```
66
What does Canada have as a result of labor unions? What do labor laws do?
Labour laws
| set standards for wages, hours, safety, etc.
67
On page 232, as a result of labor laws what can employers no longer do?
Employ children full time and
| or in dangerous jobs
68
Unions _________ the power of __________ and the __________.
Balance
employers
economy
69
Labour laws?
Recognize the rights to workers
70
Name two negatives to have unions.
Price the workers right out of a job
| move businesses out of the country
71
What does historical context do?
Historical context concerns events, and accepted values and attitudes, that shape responses to issues
72
When did the Winnipeg General Strike occur?
1919
73
What made Canada’s government concerned at this time?
| Winnipeg General Strike
Russian revolution made Can. Worried about the potential power of workers’ unions
74
What protected collective bargaining in Canada?
Charter of Rights
75
What part of this document protects these rights?
Section 2 freedom of Association
76
economics:
the study of the production, distribution, and consumption of goods and services
77
economic system:
the way a society organizes the production, distribution, and consumption of goods and services
78
economy:
the resources and processes involved in the
production, distribution, and consumption of goods
and services
79
scarcity:
in economics, the idea that land (materials), labor, and capital (money) limit the supply of what people want and need
80
privately owned:
in economics, the part of the economy owned and
| controlled by businesses and individuals
81
publicly owned:
in economics, the part of the economy owned and
| controlled by the government and paid for by taxes
82
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.
83
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.
84
consumers:
those who use products and services
85
demand:
the wants and needs of consumers for products and services
86
producers:
those who create products and services
87
supply:
the products and services created by producers
88
competition:
in economics, rivalry among producers to sell products to consumers
89
unemployment rate:
the percentage of the workforce that does not have jobs
90
strike:
a cessation of work by workers. Strikes pressure employers to respond to issues that concern workers.
91
collective bargaining:
negotiating as a group. Collective bargaining is the
| key right established by unions for workers.
92
labor union:
an organization of workers that acts to protect workers’ rights and interests
93
What can economics affect?
The incomes people make, the jobs they have, and the taxes they pay to the government.
94
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.
95
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.
96
What are some factors that can limit resources:
The growing season in Canada and trade agreements with other parts of the world.
97
In economics, the idea that resources are limited is called….
Scarcity
98
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).
99
What labor consists of example:
(e.g., agricultural workers to
produce foods, servers to staff
restaurants).
100
What does capital consist of:
that people own or borrow, used to purchase equipment, tools and other resources to produce
goods and services.
101
An economic system’s position on the continuum is.....
dynamic, and depends on the underlying values of a society and its government.
102
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.
103
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.
104
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.
105
public good:
what’s best for society as a whole.
106
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.
107
The Public Good and Cooperation: what do they value:
values equity: responding
to others in a way that recognizes
their needs and circumstances.
108
The Public Good and Individualism
Some people believe that what’s
best for each person individually
adds up to what’s best for society.
109
The Public Good and Individualism: what do they value:
values individual creativity and independence.
110
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.
111
Is Canada’s position on the economic continuum static?
It shifts left and shifts right depending on the political party that forms the government.
112
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,
113
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,
114
What’s a Crown corporation?
A Crown corporation is a company owned by Canada’s government to provide products and
services to Canadians.
115
reasons for the government to create Crown corporations include:
* To provide essential services.
* To promote economic development.
* To support Canadian culture and identity.
116
Examples of Crown Corporations in Canada:
- Air Canada
- Petro-Canada
- Radio-Canada.
117
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.
118
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.
119
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.
120
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.
121
How are Mixed and market economies similar?
systems, the individual choices of consumers are an
| important economic force.
122
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.
123
This section investigates the mechanisms — or
| principles — of market economics, including:
* Supply and demand.
| * Competition.
124
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.
125
What is supply about:
Supply is about producing things people want. It involves producers.
126
What is demand about:
Demand is about what people want. It involves consumers.
127
When demand for a product goes up:
it means more and more consumers are buying the product.
128
As consumers buy up the product,
the supply — or availability — of the product drops.
129
As the supply of the product drops:
This drives up the price of the product, because
| more consumers compete for the limited supply available.
130
When the price of a product
| goes up,
fewer consumers
| can afford to buy it.
131
When fewer consumers can afford to buy it.
This drives down
| demand for the product.
132
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.
133
When the supply of a product goes up,
producers cut prices to encourage consumers to buy more.
134
The lower price encourages consumers to buy more,
so demand for the product goes up.
135
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.
136
What is competition about:
Competition is about producers striving to get consumers to buy their products.
137
How do Producers attract consumers?
through different prices and product quality,
138
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.
139
Who are mall shops owned by?
decisions by government to become involved in decisions about supply and demand.
140
When does a monopoly happen:
-decisions by government to become involved in decisions about supply and demand.
141
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.
142
What is The purpose of the Wheat Board?
The purpose of the Wheat Board is to protect wheat growers from low market prices.
143
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)
144
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.
145
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.
146
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.”
147
Where does education money come from in Canada?
from taxes. Governments often fund products and services they consider essential for the public good,
148
Canada Economy:
More government
149
United States Economy:
Less government
150
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.
151
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.
152
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.
153
A spin off job is....
a job that can easily be affected if other jobs are closed.
154
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.
155
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.
156
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.
