Chapter 6/7 Definitions
What is scarcity?
Scarcity refers to a product not being able to keep up with the demand of the consumers. An example would be the Nintendo Wii. Everyone wanted a Nintendo Wii but the producers could not keep up with the demand. This made the Nintendo Wii scarce.
The government creates mandated increase in minimum wage. Is this a shift left or right?
Shift left.
What is the law of demand?
The law of supply and demand is a fundamental economic principle that explains how prices are determined in a market economy.
Supply: When the supply of a good or service increases, its price tends to decrease (because there is more of it available). When supply decreases, the price tends to increase (because it becomes scarcer).
Demand: When the demand for a good or service increases, its price tends to increase (because more people want it). When demand decreases, the price tends to decrease (because fewer people are buying it).
What is a market economy (Laissez-faire or capitalism)? Where in the world do we have market economies?
A market economy is when there is little to no government involvement. A true market economy is in the US.
What is the definition of consumerism?
Socio-economic theory linking the social status of consumers with the amount of goods they consume.
What is a labour union? What is one positive and one negative aspect of a labour union? Which economy would be least in favour of a labour union?
A labour union is an organization formed by workers to protect their rights and interests in the workplace. It negotiates with employers on behalf of its members for better wages, working conditions, benefits, and job security. A negative, unions may call for strikes if their demands aren't met, which can lead to lost income, disruptions in production, and tension between workers and employers. A capitalist economy would most likely disagree with a labour union.
The government adds higher taxes on businesses and individuals in a mixed economy. Is this a shift left or right?
Shift left.
What happens when demand exceeds supply?
When demand exceeds supply, it creates a shortage, meaning there are not enough goods or services available to meet consumer demand. This will mean the product is scarce.
What is a planned economy? Where in the world do we have a planned economy?
A planned economy is where the government controls all factors of the economy. Leaving little to no say to the consumers. We have a planned economy in Hutterite colonies around Canada and other parts of the world.
What is the definition of economics?
Economics is the study of how individuals, businesses, governments, and societies make choices about how to allocate limited resources (such as money, time, and raw materials) to meet unlimited wants and needs.
What are the three things that determine scarcity?
Land, labour, and capital.
The government reduces government regulations on businesses encourage entrepreneurship and innovation?
Shift right.
Define equilibrium in the context of supply and demand.
Equilibrium is the point where supply and demand are equal, meaning the quantity of goods or services supplied by producers matches the quantity demanded by consumers at a specific price.
What is a mixed economy? Where in the world do we have a mixed economy?
A mixed economy is when consumers make a majority of the decisions. However, the government steps in when needed. Canada is an example of a mixed economy.
What is the definition of economic systems?
The way a society manages their money and responses to different situations regarding consumers and producers.
What is quality of life? What are four factors that are used to measure our quality of life?
Quality of life refers to the general well-being of individuals and societies, factors like health, happiness, education, and the environment. It is an overall measure of how comfortable, healthy, and satisfying people's lives are.
The government adds a removal of tariffs and trade barriers which leads to greater competition and lower prices for consumers. Is this a shift left or right?
Shift right.
What are the three basic economic questions regarding how to address scarcity?
1. What goods and services will be produced?
2. How will the goods and services be produced?
3. Who will receive the goods and services?
What is a crown corporation, and why does Canada have them in a mixed economy?
Since Canada has a mixed economy, the government plays a role in key industries while still allowing private businesses to operate. Crown corporations exist to ensure the public always has access to these goods and services. IE: The Canada Post.
A boycott is a form of protest where individuals or groups refuse to buy goods or services from a specific company, country, or organization to express disapproval or to force a change in behavior or policy. Answers may very!
What is GDP?
What is the overall goal of both Shift Left and Shift Right economic policies?
The overall goal of both Shift Left and Shift Right economic policies is to manage the balance between government intervention and market forces to address issues of economic efficiency, social welfare, and the role of government in the economy.
What is the difference between competition and cooperation in the context of economics?
Competition occurs when multiple businesses or individuals vie for the same resources, customers, or market share. Cooperation occurs when individuals, businesses, or countries work together to achieve mutual benefits or share resources.
What is the main goal of a planned economy?
The main goal of a planned economy is to ensure economic equality and stability by having the government control production, pricing, and distribution of goods and services.
What laws protect consumers?
Several laws and regulations exist to protect consumers and ensure fair treatment in the marketplace. These laws are designed to prevent businesses from engaging in deceptive, unsafe, or unfair practices. Some key consumer protection laws include:
The Consumer Protection Act:
This law ensures that consumers are not misled by false advertising, deceptive business practices, or unsafe products. It helps consumers seek compensation if they are harmed by faulty products or services.
The Competition Act:
This law promotes competition and prohibits businesses from engaging in anti-competitive practices, like price-fixing or creating monopolies, that would harm consumers by reducing choice or increasing prices.