The Economy Flashcards
How does the economy work?
The economy works by circulating money in exchange for goods and services.
What kind of economy does Canada have?
A mixed economy
What is a free enterprise system
Is a privately owned company with minimum government control
What is a planned economy?
The government has full control of the company
What are the 5 kinds of resources that people use to satisfy there needs and wants
- Labour (muscle power and skills of people)
- Technology
- Entrepreneurship (willing to take business risks)
- Natural resources
- Capital (property, buildings, tools, equipment)
What are the three functions of money?
Buy
Save
Measures value
Why do prices move up and down?
2 answers
Change in demand
Change in supply
What are two reasons of using counterfeit money?
Pay for terrorism
Paying for more counterfeiting
Two concerts of counterfeit?
Products not made well
Can lose job because of loss of sales
Who loses when people counterfeit?
The creators of the copied object
Employees of the creator
Anyone who buys counterfeit things
Where does the word economy come from?
The word economy comes from a Greek word meaning “the running of a household”
