Econonomic Intro Pt 2

Question 0

What happens when supply is low and demand is high

Answer 0

The prices will go up because it’s scarce

Question 1

What happens when supply is high and demand is low?

Answer 1

The price will drop because there is a lot of it and nobody wants it

Question 2

What’s the difference between wants and needs?

Answer 2

Wants- you want it (phones, toys ext.)

Needs- you need it (food clothing shelter)

Question 3

Who is the jungle and why is it called that?

Answer 3

The jungle is the market economy (U.S) it is called this because there is little or no government involvement and companies in the economy are free to do what they please

Question 4

What is the zoo and why do they call it that?

Answer 4

The zoo is the centrally planned economy and its called this because the government runs everything and it is all planned and organized

Question 5

What are the principles of the market economy?

Answer 5

• resources are privately owned
• individual freedom
• freedom of choice ( supply & demand)
• competition

Question 6

Why do governments intervene in a market economy?

Answer 6

When many people are in high risks of losing jobs and it would be a drop in the economy, then they step in to keep the economy going

Question 7

Why is Canada viewed as having a mixed economy?

Answer 7

Because Canada is both market economy and planned economy, in other words there is government involvement but not as much as centrally planned economy’s

Question 8

What are some similarities and differences in the way that the government in Canada and the U.S. Intervene in the market economy ?

Answer 8

Similar- they both intervene when their economy is at risk and many people are losing jobs

Differences - Canada sets rules for the economy, U.S. Has no say, or rules

Question 9

What is the role of the consumer in the mixed economy ?

Answer 9

To buy products and pay taxes to the government

Question 10

What is the role of the consumer in the market economy?

Answer 10

Buy products

Question 11

What is a bad apple in a cooperate world?

Answer 11

Cooperation a with a bad reputation, they do bad things ex. Xerox, Kmart, tyco

Question 12

How do the economic systems of Canada and the United States differ in answering the basic questions economic question of scarcity

Answer 12

Canada- whatever decision they make there is a safety and net and the gov. Will have there backs
United States - they have to be really careful of what they decide to make because if they don’t chose the right choice then they’re company and job can be in great jeprody

Question 13

Why is Kendra the best person ever?

Answer 13

Life

Question 14

What is market economy?

Answer 14

A system of government also known as laissez Farir where there is little government regulation. Private companies are run and competition is every high. The main motive is profit

Question 15

What are the differences between Canada’s cooperation and the U.S. Individualism?

Answer 15

In Canada most believe that individuals must consider

Question 16

What societal values underline social programs in Canada and the United States ?

Answer 16

Canada - we value equality, balance and fairness

United Sated - you get what you work for basically

Question 17

What is the private sector ?

Answer 17

The part of economy owned and controlled by business and individuals

Question 18

What factors effect public good?

Answer 18

Public safety 
Public health
Resources 
Education 
Equality

Question 19

What is the order from the very left to the very right on the economic spectrum

Answer 19

Centrally planned economy ( north & South Korea) – mixed economy ( Canada) – market economy ( United States)

Question 20

What is the profit incentive ?

Answer 20

What motivates people to produce and sell goods and services. The desire I make money $$$$$$

Question 21

Who is Adam smith?

Answer 21

Founder of capitalism & wrote the wealth of nations in 1776 ( a book about capitalism )

Question 22

What is consumer sovereignty ?

Answer 22

The power consumers have in directing market economies because goods + services are produced and exchanged mostly to satisfy consumer wants. In other words consumers power over what is being made and sold

Question 23

What happens to prices in a monopoly ?

Answer 23

Prices go up because there’s no other choice for consumers ( illegal in Canada )

Question 24

What is a renewable resource and examples?

Answer 24

Resources that can be used more then once and are everlasting ex. Forest trees and land grasses

Question 25

What are non renewable resources and examples?

Answer 25

They are resources that can’t be used again, you only use them once! Ex. Fossil fuels and water