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
Crown Coperation
- Company owned by Canada's government
- Provides goods and services to Canadians
Ex. Petro Canada
26
Why did Canada's government create essential services?
- To provide essential services
- To promote economic development
- To support Canadian culture and identity
27
Consumers
- People who buy products and services
28
Demand
- The wants and needs of consumers for products and services
29
Producers
- People who create goods and services
30
Supply
- The products and services created by producers
31
Law of Supply and Demand
Supply goes up
Price goes down
Demand goes up
Supply goes down
Price goes up
Demand goes down
32
Competition
- The fight between producers to sell products to consumers
33
Monopoly
- When sectors in an economy are controlled by a single company, which then has total control over price, availability and choice
34
Why would governments intervene in free market economies?
- 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
Unemployment Rate
- The percentage of the workforce that is unenployed
36
Strike
- When workers stop working as a form of protest
- Strikes pressure employers to respond to issues that concern workers
37
Labour Unions
- An organization of workers that acts to protect workers rights and interests
38
Collective Bargaining
- Negotiating as a group
- Key right for workers established by unions
39
Collusion
- A secret/illegal operation or conspiracy
