Econ 101
This basic economic problem exists because resources are limited but wants are unlimited.
What is scarcity?
This occurs when quantity demanded equals quantity supplied, and no party is left waiting for the other.
What is equilibrium?
The things you own, like your house or car, that have financial value.
What are assets?
It's the name for the phenomenon that sees rising prices over time.
What is inflation?
This occurs when countries trade goods and services with few restrictions.
What is free trade?
It's the value of the next best alternative that is given up when making a choice, like when we accept Pepsi when asking for Coke.
What is opportunity cost?
These two types of goods are products often bought together, like hot dogs and hot dog buns.
What are complementary products?
This "wet" measurement tells us how easily an asset can be turned into cash.
What is liquidity?
Like the US Federal reserve, It's the institution that controls interest rates in Canada and sets national monetary policy.
What is the Bank of Canada?
This is a tax placed on imported goods and a favourite tool of the current US president?
What is a tariff?
Land, labour, and capital are known collectively as these.
What are the factors of production?
High housing costs might lead a government to implement one of these to curb prices.
What is a price ceiling?
RBC, TD, and Scotia, but not Tangerine, are all examples of this type of institution.
What are the Big 6 Banks?
During the pandemic, the government issued stimulus cheques to help increase spending during economic downturn, which is a key component of this policy.
What is expansionary fiscal policy?
When a country can produce a good like fish or bananas at a lower opportunity cost than another country, it has this.
What is comparative advantage?
This model shows the maximum combinations of two goods a given economy could produce.
What is a production possibilities curve?
When an influx of Stanley water bottles lands in a market more interested in Owala water bottles, or when quantity supplied is greater than quantity demanded.
What is a surplus?
Those AirPods you got were only $329, but paying only the minimum balance on one of these can result in large interest charges over time.
What is a credit card?
This category of unemployment includes people temporarily between jobs and is commonly voluntary.
What is frictional unemployment?
This major agreement, currently up for renewal, connects Canada, the United States, and Mexico in a major trade partnership.
What is CUSMA or USMCA?
In economics, this common comparison phrase is useful in describing the trade-off between military spending and consumer goods.
What is "guns vs. butter"?
According to this law, as price rises, quantity supplied usually rises too.
What is the law of supply?
Stocks, ETFs, and mutual funds, though not GICS, are examples of these.
What are equity investments?
Negotiations between unions and employers over wages and working conditions are usually called this.
What is collective bargaining?
Doing business in one country while hiring workers in another country to cut down on costs is referred to as this.
What is outsourcing?