Economic Systems
An economic system where businesses are owned by private individuals.
What is capitalism?
A regular payment you receive from working.
What is a salary (or wage)?
As price increases, quantity demanded usually does this.
What is decrease?
When countries trade goods with each other, it is called this.
What is international trade?
Key Economic Concepts
What is scarcity?
In this system, the government controls major industries and sets prices.
What is a command economy?
A written plan for managing your income and expenses.
What is a budget?
The amount of goods a producer is willing to sell at different prices.
What is supply?
A tax placed on imports to protect local businesses.
What is a tariff?
Choosing one thing means giving up another.
What is opportunity cost?
Canada’s economy is mostly this type, mixing government and private ownership.
What is a mixed economy?
When you buy something you can't afford now and pay later.
What is credit?
This is created when supply is greater than demand.
What is a surplus?
The organization that promotes international trade and settles disputes.
What is the World Trade Organization (WTO)?
This occurs when the economy is shrinking.
What is a recession?
An economy based on customs, traditions, and bartering.
What is a traditional economy?
The amount of money you owe when borrowing.
What is principal (or debt)?
A government-set minimum price, like for wages.
What is a price floor?
When a country sells more to others than it buys.
What is a trade surplus?
The person known as the "father of modern economics."
Who is Adam Smith?
The term for when the government has no involvement in the economy.
What is laissez-faire?
A score that shows how trustworthy you are with borrowed money.
What is a credit score?
The term for when quantity demanded equals quantity supplied.
What is market equilibrium?
The term for sending jobs or production to other countries to reduce costs.
What is outsourcing?
The extra cost of producing one more unit of a product.
What is marginal cost?