Econonomic Intro Pt 2 Flashcards
What happens when supply is low and demand is high
The prices will go up because it’s scarce
What happens when supply is high and demand is low?
The price will drop because there is a lot of it and nobody wants it
What’s the difference between wants and needs?
Wants- you want it (phones, toys ext.)
Needs- you need it (food clothing shelter)
Who is the jungle and why is it called that?
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
What is the zoo and why do they call it that?
The zoo is the centrally planned economy and its called this because the government runs everything and it is all planned and organized
What are the principles of the market economy?
- resources are privately owned
- individual freedom
- freedom of choice ( supply & demand)
- competition
Why do governments intervene in a market economy?
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
Why is Canada viewed as having a mixed economy?
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
What are some similarities and differences in the way that the government in Canada and the U.S. Intervene in the market economy ?
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
What is the role of the consumer in the mixed economy ?
To buy products and pay taxes to the government
What is the role of the consumer in the market economy?
Buy products
What is a bad apple in a cooperate world?
Cooperation a with a bad reputation, they do bad things ex. Xerox, Kmart, tyco
How do the economic systems of Canada and the United States differ in answering the basic questions economic question of scarcity
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
Why is Kendra the best person ever?
Life
What is market economy?
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