Unit 1: Activities 4-7 Flashcards
1
Q
Micro-economics is…
A
the study of the behaviour of individuals and groups of individuals, such as consumers, households and businesses.
The term “Micros” means small in Greek.
This unit will focus on Micro-economics.
2
Q
Macro-economics is…
A
the study of the economy as a whole, such as the overall level of consumption, investment, government spending, prices and employment.
3
Q
What do crown corporations do?
A
- Are responsible to government
- Goal is to aid in the development of industries, regions, etc. not to make profit
- Essential Services provided by government/public sector; benefit common good
4
Q
Canada’s 7 economic goals are…
A
Full Employment Stable Prices Balance of Trade Economic Growth Economic Freedom Economic Efficiency A reasonable level of federal and provincial debt
5
Q
Economic Growth is…
A
increase in the value of goods/services produced by an economy; measured in Gross Domestic Product (G.D.P)
6
Q
Why do nations trade?
A
- More can be produced through specialization (hire out someone to do a part of a job that you don’t do best)
- Absolute advantage: ability of one person, region or country to produce a good/service at a lower cost than a competitor’s; (ex. Canada and wheat)
- Comparative Advantage: ability of one person, region or country to provide a good/service more cheaply with lower opportunity cost than that of another person, region or country.
7
Q
Fiscal Policy is…
A
issues such as taxation and spending; government decisions influence many areas of Canada
8
Q
Recession is…
A
When there is widespread unemployment
