Chapter 6 Flashcards
Economic
The study of the production, distribution, and consumption of goods and services
Economic System
How 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, labour and capital limit the supply of what people want and need.
Privately Owned
In economics, the part of the economy owned and controlled by businesses or individuals
Publicly Owned
In economics, the part of the economy owned and controlled by government and paid for by taxes
Consumers
Those who use products and services
Demand
The wants and needs of consumers for products and services
Producers
Those who created producers and services
Supply
The products and services created by producers
What factors influence our economy?
Supply and demand
Materials
World events
What are some factors that create scarcity?
Land
Labour
Capital
What are the three types of economic systems
Mixed
Planned
Market
What are the characteristics of a planned economy?
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
What are the characteristics of a mixed economy?
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
What are the characteristics of a market economy?
The choices of individuals solve scarcity
Private businesses own and manage resources
Businesses succeed if they produce what consumers want
What is the idea of public good?
Some people believe that we must set aside our individual interests to achieve what’s best for everyone
What is the idea of individualism?
Some people believe that what’s best for each person individually adds up to what’s best for society
What is a shift left?
When the liberal party wins an election, especially when it’s a minority government
Usually results in more government
What is an example of a shift left?
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
What is a Shift Right?
When the Conservative party wins an election and usually results in less government control
What is an example of a shift right?
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
What are Crown Corporations?
A company owned by the government that provide essential services to society
What are some examples of crown corporations?
CBC
Canada Post
Petro-Canada
What are the three questions that address scarcity?
What do we need to produce?
How are we going to produce?
Who is going to buy it?
What are subsidies?
Money given to help make things more competitive
