chapter 6

Question 1

what is scarcity? how does it occur?

Answer 1

having short/limited supply

occurs bc ppl had unlimited wants, but there are limited resources

Question 2

what are the factors of production?

Answer 2

land - resources
labour - workers
capital - money

Question 3

what is an economic system? what are the three systems?

Answer 3

a way to solve the basic problem of scarcity.
or [method used to produce goods/services]

planned, mixed, market

Question 4

what are the questions to determine economic system of a country?

Answer 4

1) who decides what is produced
2) who decides how it is produced
3) who decides who consumes it

Question 5

command economy

Answer 5

most government control - make decisions about the production/consumption of goods

Question 6

mixed economy

Answer 6

system that combines the traditional/command and free market

Question 7

market economy

Answer 7

economic decisions are made by individuals + based on exchange/trade

Question 8

what is a market? why do they exist?

Answer 8

allows buyers + sellers to exchange goods/services

exist bc no one produces all the goods we need to satisfy us

Question 9

what are some advantages of a market economy?

Answer 9

• economic efficiency
• more economic freedom
• encourgaes growth through competition
• offers wide variety of services

Question 10

how does a mixed economy have both market and command values?

Answer 10

gov’t controls peoples needs
marketplace takes care of peoples wants

Question 11

what is an advantage and disadvantage of mixed economy

Answer 11

pro: a balance of wants and needs
con: citizens have to pay taxes

Question 12

what is the difference between public and private

Answer 12

public: ideals of equality + economic strength is promoted

private: feeling of control, provides incentive

Question 13

what are the different values of mixed and market economy

Answer 13

mixed: cooperation [ppl must consider others and set aside differences for society]

market: individualism [whats best for each person adds up to whats good for society]

Question 14

what is competition?

Answer 14

is abt wanting consumers to buy their products
producers attract consumers with price, advertising, and product quality

the act/process of trying to get or win sales

Question 15

what is a monopoly

Answer 15

when a produceer controlls all the supply of a good/service
laws are in place to prevent monopolies since they are unfair for the consumer

Question 16

what are entrepreneurs

Answer 16

ppl willing to compete + take risks in market economy
they think of innovations and get profit from their idea

how they market is the key to success

Question 17

what is supply and demand? how is scarcity affected by it?

Answer 17

scarcity is solved in market encomies with supply and demand

connect via a cause/effect relationship

more demand - low supply - high price
high price - low demand - more supply
more supply - low price - more demand

Question 18

what is a labour union?

Answer 18

organized by workers to represent needs to employer
allow workers to act as a group [collective bargaining]

Question 19

how are labour unions effective?

what are forms of pressure that labour unions use?

Answer 19

collective bargaining is more efficient than one person

can pressure employers abt wages, working hours, workplace safety

strikes - workers refuse to do their job

Question 20

what is a crown corperation?
what is their purpose

crown corperations can only exist in one type of economy. what economy?

Answer 20

a company owned by canadas govt
made to: provide services, promote economic development, support canadian culture

only exist in a mixed economy

Question 21

what is budgeting?

there are two ways the govt can approach budgeting. what are they?

Answer 21

when the govt has to decide how to spend tax money.

govt can either be involved in economic decision making OR allow private sctors to make economic decisions