Chapter 1
What is the difference between a want and a need?
A need is an item that is essential to survival (eg. food, shelter), while a want is a desire but is NOT a necessity.
What are the 3 types of productive resources?
Land, labour and capital
What is the definition of a market?
A market is the interaction of buyers and sellers for the purpose of making exchange, which establishes a price for goods and services. There is 2 sides of the market: buyers side, and sellers side.
What are the 4 types of good producing industries?
1) Primary Industry
2) Secondary Industry
3) Tertiary Industry
4) Quaternary Industry
What does MRPL stand for?
A scarcity is NOT present at all times. True or false?
FALSE. A scarcity is ALWAYS present because we have limited quantities of resources to meet our unlimited wants.
What is the difference between tangible and intangible resources?
Tangible resources have physical properties that can be easily quantified, while intangible resources lack physical properties.
The intersection of the demand and supply for a product is known as the _______________.
Equilibrium
Name 3 of the 6 forms of business ownership.
1) Sole proprietorship
2) Partnership
3) Corporation
4) Co-operative
5) Government enterprise
6) Non profit/charitable
What factors shift the demand curve?
1) Quantity demanded- changes when price changes
2) Demand- shifts because of the 3 factors
What are the 3 types of fallacy's?
Fallacy of composition, post hoc fallacy, and fallacy of single causation
What are the 3 economic questions?
1) What to produce?
2) How to produce it?
3) Who will receive it?
Please identify whether the following is an example of complementary or substitute goods? - gasoline and car
Complementary goods
The following is an example of _____ type of form of security. Eg. Borrowing money to pay it back with interest at a later date.
Bonds.
Name 2 of the 4 factors that shift the labour curve.
1) Changes in income tax rates
2) Changes in size and composition of population
3) Change in household technology
4) Change in attitudes about work
What does it mean if a point is located somewhere inside of the PPC?
If a point is located somewhere inside the PPC it means that the economy is INEFFICIENT. In others words they are not utilizing their resources to full capacity.
What are the 4 economic systems?
1) Traditional Economy
2) Command Economy
3) Market Economy
4) Mixed Economy
Name 3 of the 6 factors that affect supply.
1) Price
2) Production Costs
3) Technological change
4) Psychology of owner
5) Weather conditions
6) Prices of other products
State 2 disadvantages of small businesses
1) Limited size and scope of operations
2) Unable to influence the market because of small size and market share
Name 3 of the 7 bargaining methods
1) Conciliation
2) Attribution
3) Strikes
4) Lockout
5) Boycott
6) Rotating strikes
7) Work to rule
State the law of diminishing return.
The law of diminishing return is as follows: If one adds resources output will increase but the increase in the output will become less and less over time due to the fact that one resource is fixed.
What are the 4 types of political systems?
1) Communism
2) Socialism
3) Capitalism
4) Fascism
What is the difference between demand and quantity demanded?
Demand is the QUANTITY of a good or service that buyers will purchase at various prices during a given time period. While, quantity demanded is a SPECIFIC POINT in the demand curve.
Explain the term "brain drain".
The term "brain drain" refers to many expert researchers in Canada being attracted to labourites in the USA. It is argued that this has had a disruptive effect on Canadian productivity and economic growth.
Explain the term Human Capital.
Human capital is the knowledge, skills and talents that workers have through education or natural ability.