Chapter 6 - economy Flashcards
What are economics
The study of the production, distribution, and consumption of goods and services
What are economic systems
The way a society organizes the production, distribution and consumption of goods and services.
What is scarcity
It’s the idea that land, labor, and capital (money) are limited to what people want or need.
Why r things that ppl want or need limited
Because resources r limited
How great was the demand for super cyborg
The demand for super cyborg city was so great it created a scarcity of the product
What creates scarcity?
Materials found in the natural environment needed to produce goods and services, such as renewable and non-renewable resources
What does labor consist of
Consists of the physical and mental effort needed to produce goods and services
What does the capital consist of
Consists of money that people own or borrow, used to purchase equipment, tools, and other resources needed to produce goods and services
What is a basic way of solving scarcity
An economic system is a basic way of solving scarcity
What r economic systems placed on
Economic systems can be placed on a spectrum; their spot on that spectrum depends on the underlying values of that society
What does the government own
The government owns and manages all the resources
What do private businesses do in market economies
Private businesses manage and sell their own resources
How do businesses succeed in market economies
Businesses succeed if they sell products consumers want, otherwise they fail
Does the government have a roll in a market economy
No, the government does not get involved
What does a mixed economy combine
Combines private ownership and government control
What do individuals and the government decide on in a mixed economy
Individuals and government make decisions about what to produce
What does the level of government involvement depend on in a mixed economy
The level of government involvement depends on what political party is in power
What is a shift left economy
A shift left economy can either be
publicly funded healthcare or pensions for seniors
Who controls the shift left economy
Prime Minister Lester Pearson (Liberals)
What is a shift right economy
A shift right economy cuts to govt. spending privatizes government-owned corporations
and controls the North American Free Trade Agreement (NAFTA)
Who controls the shift right economy
Prime Minister Brian Mulroney (Progressive Conservatives)
What do individuals believe that’s best for society
The belief that individuals must consider each other and set aside their individual differences to achieve what’s best for society
What does belief in what’s best for each individual add to what’s best for society
the belief that what’s best for each person individually adds up to what best for society
How do supply and demand control the market system
Supply and demand control the market system through a cause-and-effect relationship related to price.
How do supply and demand effect quality life
because they affect the prices of products we buy, the availability of products, and jobs connected to creating products.
What is demand
Demand is the quantity of a good that consumers will buy. The demand for the good is related to the price of that good
The higher the price of a good, means that
The higher the price of a good, the fewer people will want to buy and therefore, the lower the demand.
The less the price of a good, means that
The lower the price of a good, the more people will want to buy and the higher the demand will be.
What is supply
Supply is the quantity of a good that producers are willing to make an offer for sale in the market.
The higher the price of the good, means that
The higher the price of the good, the more producers will want to make and the greater the supply
The lower the price of good, means that
The lower the price of a good, the less producers will want to make and the lower the supply will be
What is competition
Competition is about striving to get consumers to buy their products
How do producers attract consumers
Producers attract consumers in a variety of ways
- Price
- Product quality
- Advertising
What factors affect competition
- The values of consumers
- Decisions by the government to get involved in decisions about supply and demand
How r prices determined
Determined by the interaction of supply and demand.
What do market economies rely on
Market economies rely on the decisions of individuals consumers and producers
Why would the government get involved
Sometimes the government may get involved to inform, protect or ensure good and fair practices
Why do governments intervene in the economy
Governments may intervene in the economy by changing their level of spending and the supply of money to try to even out the boom and bust cycles
Entrepreneur
A person who ORGANIZES a business and takes the RISKS associated with competing in a market economy
Labour unions
An organization of workers that ACTS to PROTECT workers’ rights and interests
