Regionalism & Economy Flashcards
Natural Resources
Things that occur in nature that have value and may be used to produce goods.
Labour
Services provided by workers to provide goods and services to Canada
Capital
Money invested in a business to defray the start up or operating costs involved; assets like property, money, or equipment that has value
Entrepreneurs
People who are willing to risk money to start up a business or expand an existing one
Factors of Production
Everything necessary in the production process
Goods
Supplies that can be sold
Setvices
Work done for a fee
Market
A region in which there is demand for a product and in which the product can be bought and sold
Demand
The level of desire for particular goods or services at a certain price
Supply
The quantity of particular goods or services available for purchase at a certain price
Equilibrium
The point where the price of an item is equal to the supply and demand of the item
Scarcity
The problem of infinite human needs and wants for goods and services in a world with finite resources
Surplus
An excess of government revenue over government spending
Deficit
An excess of government spending over government revenue
Heartland
Any area or region that is the centre of a country’s industry
Hinterland
The outlying region of a country that supports a country with agricultural products, natural resources, and raw materials
Gross Natural Product (GNP)
The value of all the goods and services produced in a country plus the value of all the goods and services imported from other countries
Gross Domestic Product
The market value of all the goods and services produced in a country
Monopoly
A market situation where there is only one producer of a good or service
Oligopoly
A market situation where there is a few major producers of a good or service
Opportunity Cost
The decision to spend a certain amount of money on something, meaning the money is no longer available to spend on something else
Technology
The knowledge of experts such as scientists, engineers, and technicians
Business Environment
The basic social and business institutions, and their values that underline their economic activities
Ways People Use Money
- To buy goods and services
- To save for future use
- To measure the value of goods / services
Free Enterprise System
Businesses are privately owned and decisions are made through the marketplace with little government regulation
Planned System
Businesses are owned by and decisions are made by the government
Mixed System
Possesses attributes of both a free enterprise and planned economy
Ways the Government Helps Canadians
- Medicare and old age pensions
- Employment insurance
- Canadian Employment Centres
- Family allowance (CCTB)
- Primary and secondary public education
- Aid for post-secondary education
- Part-time and full-time minimum wage laws
- Rent control laws
- Environmental safety laws
- Workers compensation
- Guaranteed income settlements
Inflation
The continual rise of prices over time, it occurs when there is an imbalance of supply and demand
Why do governments monitor inflation?
The dollar would lose its value and people would not be able to afford basic necessities
What is the purpose of the CPI index?
The index reflects price changes for a fixed “basket” of goods and services
What is Canada’s ideal inflation rate?
Two percent
Why did inflation raise to 7.2 percent in 2022?
- People under lockdown conditions shopped
- The Russia-Ukraine war
- More jobs in North America than workers
What is the role of the Bank of Canada?
Canada’s central bank sets monetary policy, regulates money supply, and sets interest rates
How does the Bank of Canada work to curb inflation?
The bank increases interest rates so people and businesses would spend less on non-essential items
What were the three goals of John A. Macdonald’s National Policy?
- Tariff American-made goods entering Canada to encourage industry growth
- Increase settlement in the west and turn Canada into a transcontinental nation
- Complete the Canadian Pacific Railway to carry settlers and form a transportation link
When was the Canadian Pacific Railway completed?
1855
When did Western Canada see a significant increase in settlers?
1896
Why did western farmers dislike the National Policy?
It made manufactured goods more expensive to purchase
What happened to Canadian crops on the international market?
Prices of crops for western farmers were often low, and the cost to ship them was high
Subsidy
A financial aid the government gives to private business owners to assist financially
When was the first Canadian subsidy on grain?
The Crow’s Nest Pass Agreement of 1897
Branch Plant
A business owned and operated by a company based in another country
The East-West Vision of Canada
- Developing transportation infrastructure as a way of facilitating East-West economic flows
- The implementation of the National Policy and its intention to foreclose tendencies to trade from north to south
- Large Canadian retail chains which link Canadians economically
- Communication policies created by the CRTC, and the CBC network are aimed at creating and East-West information flow and identity
- Sports leagues like the CFL, CHL, and CIS
- Canadian social policy allows same minimum standards around Canada
The North-South Vision of Canada
- The railroad and highway systems have been accused of being an expensive limitation on Canada’s economic development
- Belief that each Canadian region would do better in an era of free trade with the south
- Many Canadian businesses have found it expedient to become branch plants of American enterprises
- Canadians have historically been ambivalent and doubtful about their patriotism
- Canadians often prefer American television shows and movies as opposed to Canadian ones
- Sports leagues like the NFL, NHL, and NBA are increasing in popularity
- Canada’s social policies often come under attack as unfair subsidies
