Unit 6 Quiz Part 1 Flashcards

1
Q

What is an economic system?

A

The way society organizes the production, distribution, and consumption of goods and services

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2
Q

What is scarcity?

A

The idea that land and materials limit what people need

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3
Q

What factor create scarcity?

A

Land, labor, capital

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4
Q

Explain how land affects scarcity

A

Land consists of all the materials found in the natural environment needed to produce goods and services, such as renewable and non-renewable resources

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5
Q

Explain how labor affects scarcity

A

Labour consists of the physical and mental effort needed to produce good and services

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6
Q

Explain how capital affects scarcity

A

Consists of the money people own or borrow, used to purchase equipment, tools, and other resources to produce goods and services

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7
Q

What are the three types of economies?

A

Planned economy, Mixed economy, Market Economy

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8
Q

Which type of economy has more government involvement?

A

Planned economy

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9
Q

Which type of economy has less government involvement?

A

Market Economy

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10
Q

What does shift left mean?

A

More government involvement

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11
Q

What does shift right mean?

A

Less government involvement

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12
Q

Describe a planned economy

A
  • Government makes all decisions about how to solve scarcity
  • Government owns and manages the resources to produce things
  • Plans what will be produced and how to use limited resources
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13
Q

Characteristics of a planned economy

A
  • Resources are publically owned
  • Government makes decisions on how to use resources
  • Individual consumers have little influence on economics
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14
Q

Describe a mixed economy

A
  • Combines private ownership and government ownership
  • Government owns some and private companies own some
  • Level of government fluctuates depending on what party is in power
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15
Q

Characteristics of a mixed economy

A
  • Some resources are publicly owned and some are privately owned.
  • Individuals and government both make decisions about what to produce.
  • Individual consumers an government influence economic decision making.
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16
Q

Describe a market economy

A
  • The choices of individuals solve scarcity
  • Private businesses own and manage resources
  • The government does not get involved
17
Q

Characteristics of a market economy

A
  • Resources are privately owned
  • Individuals make decisions on how to use resources
  • Individual consumers drive economic decision
18
Q

How do individual consumers drive economic decision?

A

By choosing what to buy

19
Q

What is public good?

A

What’s best for society as a whole

20
Q

In what way does Canada acheive public good?

A

Co-operation. Must consider each other and achieve what’s best for society. Values equity

21
Q

How does the USA achieve public good?

A

Individualism. What’s best for each person individually adds up to what’s best for society. Values individual creativity and independence

22
Q

What’s Canadas founding principle?

A

“peace, order and good government.”

23
Q

What’s USAs founding principle?

A

“life, liberty, and the pursuit of happiness”