Module 1 Economic factors Flashcards
Federal government
Money banking Trade regulations External relations Defense Criminal law Transportation
Fiscal policy
Government collects revenue and distributes expenses to influence the economy
Monetary policy
How a country Controls supply of money and interest rates to influence the economy
Provincial government
Administrative labour laws Education Health welfare Protection of property and civil rights Natural resources Environment
Municipal government
Water, sewer collection and waste collection
Encourage economic development
Bylaws to regulate
Copyrights
Protection for creators of work, art, music
Trademarks
Design or name manufactures uses to identify its products in the market place
Types of taxes
Income taxes Property taxes Payroll taxes Sales taxes Excise taxes
Excise tax
Placed on specific items such as gas, alcohol, tobacco
Designed to pay for services related to the items being taxed
Ex healthcare
Macroeconomics
Focuses on economy as a whole by looking at date for large groups of people, companies and products
Microeconomics
Focuses on sub areas such as households or business
Factors of production
Natural resources, entrepreneurs, capital, labor, knowledge
Natural resources
Raw materials used in inputs in their natural state
Entrepreneurs
Combination of natural resources, labour, and capital to produce goods and services
Capital
Process used to produce goods and services to get them too customers
Labour
People who contribute to economic factors
Knowledge
Talents and skills used in workforce
Economic systems
Policies, laws which establish systems that determine what goods and services are produced and how they are delivered
Market economy
Based on competition in marketplace and private ownership of ( factors of production) natural resources, entrepreneurs, capital, labour and knowledge
Socialism
Owned by government or by private sector under government control
Market structures
Perfect competition , monopolistic competition, oligopoly and monopoly
Perfect competition
Lots of small firms, similar products, availed information and not hard to enter
Monopolistic competition
Lots of firms, differentiated substitutes and easy to enter
Oligopoly
Few firms, need large amount of entry and hard to enter
Monopoly
1 firm controls all industry sales and new drinks can not enter
GDP
Total market value of all goods if all final goods and services produced in a country’s border in a year
