Economic Terminology Flashcards
Be able to define key economic terms.
Economics
The study of the production, distribution and consumption of goods and services. p.194
Economic System
The way a society organizes the production, distribution and consumption of goods and services. p.194
Economy
The resources and processes involved in the production, distribution and consumption of goods and services. p.198
Crown Corporation
A company owned by Canada’s government to provide products and services to Canadians. p.207
Scarcity
The idea that land (materials) labour and captial (money) limit the supply of whatever people want and need. p.202
Factors of Production
Include land, labour and capital that combine to provide the supply of what people want and need. p.203
Land
Materials found in the natural environment, including renewable and non-renewable resources. p.203
Labour
The human physical and mental effort needed to produce goods and services. p.203
Quality of Life
A measure of personal and collective well-being. p. 2
Capital
The money that people own or borrow to purchase the resources to produce goods and services. p203
Privately Owned
The part of the economy owned and controlled by businesses and individuals. p.204
Publicly Owned
The part of the economy owned and controlled by the government and paid for by taxes. p.204
Planned Economy
Government makes all the decisions about how to solve scarcity. p.204
Mixed Economy
Combines private ownership and government control. p.204
Market Economy
The choices of individuals solve scarcity and private business own and manage resources. p.204
Public Good
What is best for society as a whole. p.205
Shift Left
A movement on the economic continuum towards more government involvement in the economy. p.206
Shift Right
A movement on the economic continuum towards less government involvement in the economy. p.206
Consumers
Those who use products and services. p.210
Producers
Those who create products and services. p.210
Supply
The products and services created by producers. p.210
Demand
The wants and needs of consumers for products and services. p.210
Competition
Rivalry among producers to sell products to consumers. p.212
Monopoly
One producer controls all supply of a product or service. p.213
Unemployment Rate
The percentage of the workforce that does not have jobs. p.228
Strike
A cessation of work by workers. p.229
Collective Bargaining
Negotiating as a group. p.231
Labour Union
An organization of workers that acts to protect workers’ rights and interests. p.231
