Chapter 6

Question 1

Economic

Answer 1

The study of the production, distribution, and consumption of goods and services

Question 2

Economic System

Answer 2

How a society organizes the production, distribution, and consumption of goods and services

Question 3

Economy

Answer 3

The resources and processes involved in the production, distribution and consumption of goods and services

Question 4

Scarcity

Answer 4

In economics, the idea that land, labour and capital limit the supply of what people want and need.

Question 5

Privately Owned

Answer 5

In economics, the part of the economy owned and controlled by businesses or individuals

Question 6

Publicly Owned

Answer 6

In economics, the part of the economy owned and controlled by government and paid for by taxes

Question 7

Consumers

Answer 7

Those who use products and services

Question 8

Demand

Answer 8

The wants and needs of consumers for products and services

Question 9

Producers

Answer 9

Those who created producers and services

Question 10

Supply

Answer 10

The products and services created by producers

Question 11

What factors influence our economy?

Answer 11

Supply and demand
Materials
World events

Question 12

What are some factors that create scarcity?

Answer 12

Land
Labour
Capital

Question 13

What are the three types of economic systems

Answer 13

Mixed
Planned
Market

Question 14

What are the characteristics of a planned economy?

Answer 14

Government makes all the decisions regarding solving scarcity
It owns and manages all resources
Resources are publicly owned
Individual consumers have little to no say on economic decision making

Question 15

What are the characteristics of a mixed economy?

Answer 15

Combines private ownership and government control
Private business own some resources and the government owns some as well
Individuals and government both make decisions about what to produce

Question 16

What are the characteristics of a market economy?

Answer 16

The choices of individuals solve scarcity
Private businesses own and manage resources
Businesses succeed if they produce what consumers want

Question 17

What is the idea of public good?

Answer 17

Some people believe that we must set aside our individual interests to achieve what’s best for everyone

Question 18

What is the idea of individualism?

Answer 18

Some people believe that what’s best for each person individually adds up to what’s best for society

Question 19

What is a shift left?

Answer 19

When the liberal party wins an election, especially when it’s a minority government
Usually results in more government

Question 20

What is an example of a shift left?

Answer 20

Lester Pearson won a minority government and had to cooperate with the NDP to stay in power

This resulted in legislation that gave the government a larger role in the economy, created public health care and pensions for seniors

Question 21

What is a Shift Right?

Answer 21

When the Conservative party wins an election and usually results in less government control

Question 22

What is an example of a shift right?

Answer 22

Brian Mulroney and the Conservative party won and he took steps to shift to less government involvement, cut government spending, privatized crown corporations, and signed NAFTA

Question 23

What are Crown Corporations?

Answer 23

A company owned by the government that provide essential services to society

Question 24

What are some examples of crown corporations?

Answer 24

CBC
Canada Post
Petro-Canada

Question 25

What are the three questions that address scarcity?

Answer 25

What do we need to produce?
How are we going to produce?
Who is going to buy it?

Question 26

What are subsidies?

Answer 26

Money given to help make things more competitive