Chapter 6: Economics Flashcards
1
Q
Economics
A
- The study of the production, distribution, and consumption of resources
2
Q
Economic System
A
The way a society organizes the production, distribution and consumption of resources
3
Q
Economy
A
- The resources and processes involved In the production, distribution, and consumption of goods
4
Q
Resources
A
- Money, labour, and materials need to supply what people want and need
5
Q
Scarcity
A
- When resources are limited
6
Q
What factors create scarcity?
A
Factors of Production
- Land
- Labour
- Capital
7
Q
Land
A
- Useable land and natural resources
Ex. renewable resources (fruit, trees)
non renewable resources (oil, gold)
8
Q
Labour
A
- Physical and mental effort needed to produce goods and services
Ex. farmers produce food, servers wait tables
9
Q
Capital
A
- Money available to invest in business and ideas
Ex. a loan is needed to buy a house
10
Q
What are the three basic questions of economics?
A
- What goods and services should be made?
2, How will these goods and services be made - Who will get these goods and services
- Revolve around the problem of scarcity
11
Q
Market Economy
A
- Individuals make their own decisions with little help from the government
- Resources are controlled by private companies
12
Q
How does a market economy solve scarcity?
A
- Law of Supply and Demand
- When the supply of a good decreases, the price increases and the demand decreases
- Allows government to find alternatives resources for that good or service
13
Q
Mixed Economy
A
- Where both government and businesses/individuals play a role in economy
- Resources owned by private and publics sectors
14
Q
How does a mixed economy solve scarcity?
A
- Same solutions of market economy apply to mixed economy
- Government takes care of healthcare, funding for arts etc. to help citizens
15
Q
Planned Economy
A
- Government makes all decisions about how to solve scarcity
- Owns all resources needed to produce materials
- Consumers have little influence on economy
16
Q
Privately Owned
A
- Controlled/owned by businesses and individuals
17
Q
Publicly Owned
A
- Owned and controlled by the government and paid for by taxes
18
Q
Public Good
A
- Whats best for society as a whole
19
Q
Public Good and Cooperation
A
- Individuals consider each other and set aside their individuals interests to achieve what’s best for society
- Values equity
- Recognizes other peoples need and circumstance
- Worldview
20
Q
Public Good and Individualism
A
- Whats best for everyone indviually adds up to what’s best for society
- Values individual creativity and independence
- Worldview
21
Q
Canada’s Economy
A
- Mixed economy
- Publicly funded social systems
- Government supports Canadian arts and culture
- Government will get involved when protecting consumers, environment and Canadian culture
22
Q
U.S Economy
A
- Market economy
- Founding priceable reflects individualism (connects from America’s fight to separate from Britain)
- Economic position shifts based on political party in power
23
Q
Shift Left
A
- Shift towards a more planned economy
- More government involvement
- Usually a liberal stance
Ex. taxes are raised
24
Q
Shift Right
A
- Shift towards a more market economy
- Less government involvement
- Usually a conservative stance
Ex. taxes are reduced
25
Q
Crown Coperation
A
- Company owned by Canada’s government
- Provides goods and services to Canadians
Ex. Petro Canada
26
Q
Why did Canada’s government create essential services?
A
- To provide essential services
- To promote economic development
- To support Canadian culture and identity
27
Q
Consumers
A
- People who buy products and services
28
Q
Demand
A
- The wants and needs of consumers for products and services
29
Q
Producers
A
- People who create goods and services
30
Q
Supply
A
- The products and services created by producers
31
Q
Law of Supply and Demand
A
Supply goes up
Price goes down
Demand goes up
Supply goes down
Price goes up
Demand goes down
32
Q
Competition
A
- The fight between producers to sell products to consumers
33
Q
Monopoly
A
- When sectors in an economy are controlled by a single company, which then has total control over price, availability and choice
34
Q
Why would governments intervene in free market economies?
A
- To break up monopolies and create competition
- To help consumers
(fix unfair prices or force producers to supply information on a product) - To encourage good behaviors and discourage bad behaviours
Ex. heavy taxes on cigarettes
35
Q
Unemployment Rate
A
- The percentage of the workforce that is unenployed
36
Q
Strike
A
- When workers stop working as a form of protest
- Strikes pressure employers to respond to issues that concern workers
37
Q
Labour Unions
A
- An organization of workers that acts to protect workers rights and interests
38
Q
Collective Bargaining
A
- Negotiating as a group
- Key right for workers established by unions
39
Q
Collusion
A
- A secret/illegal operation or conspiracy
