Economics Flashcards
1
Q
Economics
A
How people spend their money to get things they need and want.
2
Q
Economic Systems
A
How a society controls the distribution of resources and supplies.
3
Q
Market Economy
A
An economy that is centred around the people that live in a certain area, the government gives very little support during good and bad times.
4
Q
Command Economy
A
An economy that is centred around the government, the government controls the most important aspects of the economy and the citizens control the less important aspects.
5
Q
Mixed Economy
A
An economy that uses private corporations to maintain industries, but the government controls publicly funded systems like education and healthcare.
6
Q
Scarcity
A
When people want a product but there are low amounts of it produced or left in existence. Leads to the 3 questions.
7
Q
Land
A
The physical resources we get from land or nature
8
Q
Labour
A
The work that people do in the economy
9
Q
Capital
A
The money resourced in our economy and the growth of our economy
10
Q
Means of Production
A
Land, Labour, and Capital
11
Q
Collectivism
A
Prioritizing the overall needs of a group instead of the needs of individuals
12
Q
Individualism
A
Prioritizing the news of individuals instead of the collective needs.
13
Q
Capitalism
A
The belief that the government should not have any control over the economy.
14
Q
Competition
A
When two production companies battle to create the best products
15
Q
Profit Motive
A
Having motivation from money compensation.
16
Q
Laissez-Faire
A
The government leaving things alone
17
Q
Invisible Hand
A
The government having control over things that people cannot see
18
Q
Private Ownership
A
When individuals own land or businesses, instead of the government owning them.
19
Q
Entrepreneurialism
A
Starting new business with opportunities to make money
20
Q
Communism
A
The belief that the government should have control over the economy and every person should have equal opportunities.
21
Q
Equality
A
When people are treated the exactly the same, and have equal opportunities.
22
Q
Proletariat
A
Everyone is in the working class, there are not any rich or poor, no classes.
23
Q
Common Good
A
Thinking about others before yourself and thinking about the needs of others before your needs.
23
Q
Bourgeoisie
A
Middle class, working class people
24
Public Ownership
When the government owns all land and businesses in the economy
25
Egalitarianism
A belief of a group of people that everyone should have the same rights and opportunities.
26
Supply and demand
Amount and need for products in a specific economy.
27
Incentive
Money or compensation to increase someone’s behaviour or work ethic.
28
Socialism
The belief and practice of basic needs and rights being met and decisions being made to benefit an entire society, not just individuals.
29
Factory Act
An act in 1831 that limited working conditions for kids.
Kids 9-13 only could work 8 hours a day
Kids 14-18 could only work 12 hours a day
30
Mines Act
And act in 1842 that states that women could not higher women or boys under 13 in a mine. IN 1874, they lessened workdays to 10 hours daily
31
Labour Union
A group of employees that work to protect the rights of employees and negotiate pay, days off, and much more.
32
Industrial Revolution
In 1750 when people were changing from working on farms to working in factories and cities.
33
Public Sector
The economy, or part of it is controlled by the government.
34
Private Sector
The economy, or part of it is controlled by individuals.
35
What is the entire economy separated into?
Supply and demand, scarcity, competition, cost and benefits
36
What kind of economy does Canada have?
A mixed economy
37
__________+_____________=scarcity
unlimited wants+limited resources
38
What are the 3 questions in economics?
1. What to produce-what products+amount
2. How to produce-most efficient+amount
3. For whom to produce-what needs to be met and how to distribute them
39
In a market economy who answers the questions?
Buyers and sellers
40
In a command economy who answers the questions?
The government
41
In a mixed economy who answers the questions?
Both the government and the buyers and sellers
42
Another name for a command economy?
Planned economy
43
What is far left on the spectrum of economics?
Collectivism, Command economy
44
What is far right on the spectrum of economics?
Individualism, Free Market Economy
45
Who is Adam Smith?
-father of capitalism
-individualist
-Believed
Government should not be involved in the economy at all
(Laissez-Faire: “Leave to do” or HANDS OFF)
Individuals should be free to make decisions for themselves
Competition will provide the best quality products for cheap
Profit will motivate people to work harder. Those who work hard should be rewarded. Those that do not, shouldn’t
46
Pros of capitalism
-Promotes Risk-Taking (Entrepreneurialism)
-Competition
-Connects the world (Free Trade)
-Economic Growth
47
Cons of capitalism
Economic Inequality
Monopolies
Selfishness
Markets are volatile
48
Volatile
Can change very quickly
49
Pillars of capitalism
1. Private property
2. Self interest
3. Competition
4. Freedom of choice
5. Limited role of gov't
50
Who was Karl Mark?
-father of communism
-collectivist
-Believed
Government should control the means of production
A society made up of classes is wrong
Wealth should be taken from the rich and given to the poor. This will create equality amongst the people and remove the abuses of capitalism.
Government should regulate business to ensure it is acting in the best interest of the people
Society should be co-operative, NOT competitive
51
Pros of communism
Everyone has the same opportunities
Almost everyone is employed
Almost everyone is educated
Focus on agriculture and manufacturing
52
Cons of communism
Individuals rights are restricted
Earning is limited
No savings are allowed
Often results in Poverty
Employment rises, but meaningful employment drops
53
What was the British Labour Party
A party in 1900 that was able to work in parliament to fight for better working conditions, meaning that the lives of workers was important
54
What happened to workers in the last half of the 1800s in Britain and France?
-wages doubled
-safe working conditions
-insurance for workers
-women could go back home, while men provided
55
What do socialists believe?
Decisions should be made to benefit society as a whole
Everyone’s basic rights should be met.
Passing laws to ensure workers rights were protected
56
Balance
When there is an equal demand and supply of products, services, and goods.
57
Surplus
When there is abundant resources and not enough demand for them.
57
Quality of Life
The comfort of individuals and communities based on materialistic and non-materialistic things.
57
Standard of Living
The quality and quantity of good and services provided in a society.
58
GDP
Gross Domestic Product-The money value of final goods and services in a certain amount of time.
59
GNP
Gross National Product-The total value of goods and services made by a country in a year.
60
Capital scarcity
When money given to people to borrow is in short supply.
61
Land scarcity
When the resources that come from the land and the land are in short supply.
62
Labour Scarcity
When efforts from people that produce goods and complete services are in short supply.
63
Supply and demand
The demand or want for a product and the amount of the product that producers have.
64
Price
The amount of money that a company is trying to sell products for
65
Equilibrium
When the supply and the demand of a product is equal and balanced
66
Demand
The amount of people that want a good or service
67
Supply
The amount of a good or service a company can offer
68
Competition
When companies make similar products trying to sell the best quality for less money
69
Monopoly
A market that one company is dominant in, so they are often the only person selling the goods or services, meaning more money for goods.
70
Oligopoly
A market that has a few very dominant companies, they usually by up smaller companies, and cause less options for consumers.
71
Inflation
How quickly prices increase for services and goods
72
Demand-Pull Inflation
When the demand increases causing inflation because they cannot produce enough
73
Cost-Push Inflation
When the cost to make things increases, leading to inflation
74
Built-In Inflation
When wages rise to maintain the cost of living so the prices of goods inflate
75
Individual Identity
Only focusing on yourself involving economic issues
76
Collective Identity
Focussing on the needs of an entire society when discussing economic issues.
77
Shift Left
When a economy moves towards more government involvement. (Liberal)
78
Shift Right
When an economy shifts towards less government involvement. (Concervative)
79
NAFTA
North America Free Trade Agreement
80
USMCA
United States-Mexico-Canada Agreement. An agreement for trade between these places and the taxes for importation.
81
Crown Corporations
Companies owned by the Canadian government which provides necessary products for people.
82
Universal Basic Income
A new idea where citizens all get paid the same income or get a bonus if they don't make enough money.
83
Labour union
An organization of employees that form a group to represent wages and working conditions.
84
Collective bargaining
A negotiation process where unions fight together for their rights, because multiple opinions is stronger than 1 opinion.
85
Craft unions
Unions for skilled workers
86
Skilled workers
Workers that have high expertise in an area
87
Industrial unions
Include skilled and unskilled workers in an industry
88
Public sector union
A union that represents an entire trade
89
Strikes
People refusing to work to fight for their rights and freedoms
90
General strike
When many unions support each other and form a big strike
91
Closed-shop agreement
Workers have to be in the union before they can be workers
92
Union-shop agreement
A person has to become part of the union after they receive a job
93
Rand formula
You do not have to join the union that you work under but you have to pay union fees because you get the union benefits
94
Work stoppage
All work stops
95
Lockout
Work stoppage led by employers
96
Conciliation
A legal way to figure out a disagreement
97
Mediator
A person that works to find agreement between employers and employees
98
Binding Arbitration
When a person hears both perspectives and makes a fair decision based on rights and freedoms
99
CUPE
Canadian Union of Public Employees
100
Provincial labour board
Government agency that is responsible for approving unions
101
Bargaining unions
Workers that represent a collective agreement.
102
Consumerism
The idea that people are happy when they buy goods and materialistic things, The idea that higher consumption of goods equals a better economy.
103
Materialistic
Physical things instead of feelings and behaviours.
