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Nature of Economics & the Economy
The Market System
Production and Monetary Flow
Canada’s Government & the Economy
International Economics
100
The value of the next best alternative that is sacrificed in making a decision
What is opportunity cost?
100
Two Terms: 1.) Represents the quantity of a good or service that a seller is willing and able to provide for sale 2.) Represents the quantity of a good or service that a consumer is willing and able to purchase
What is supply and demand
100
Most commonly used form of measuring the output of an economy and the two ways to measure it.
What is Gross Domestic Product (GDP), two ways to measure it is by expenditure approach or income approach. Expenditure approach- total amount of money that was spent on goods and services within a year Income approach- income that was earned by producing goods and services in a year
100
Three elements of a welfare state
What is 1.) works to guarantee minimun standards, including minimum income 2.) it provides social protection in the event of insecurity 3.) it works to provide services at the best possible level
100
Method of using productive resources most efficiently and effectively and choosing to allocate their resources to the mass production of specific goods or services
What is Absolute Advantage
200
Four economic resources which are the assets which an economy or business require in order to supply and produce goods and services.
What is land, labour, capital, and enterprise?
200
There are three parts to a supply and demand graph. 1.) A point where the supply and demand meet which determines the price at which a good or service is sold and quantity that will be sold 2.) Area where price is set below the equilibrium price; meaning there will be significantly greater consumer demand for the item than there is willingness or ability to supply it. 3.) Area where the price is set above the equilibrium price; meaning there will be significantly greater quantities supplied of an item than there will be consumer willingness or ability to buy it.
What is Equilibrium price, Shortages and Surplus
200
Four main types of unemployment
What is Structural unemployment, Frictional unemployment, Cyclical unemployment, and Seasonal unemployment Structural unemployment - when the skills that a worker possesses do not match the demand for labour. Frictional unemployment – when workers are between jobs or seeking a job. Cyclical unemployment – when the economy goes through a cycle of business and demand decreases. Seasonal unemployment – occurs when jobs that are based on the season such as those in agriculture, construction and tourism.
200
Ways Canadians are taxed and what is the difference
What is directly and indirectly. When taxed directly, it is on their income and assets and when taxed indirectly it is on their spending
200
the price at which one currency can be purchased for another currency.
What is Exchange Rate – often referred to as the FX rate. The values of all currencies around the world are reported in terms of their value in relation to the US dollar. Some of the most traded currencies are the US dollar, the Euro, the Japanese yen, the British pound, and the Australian and Canadian dollars.
300
Four basic economic systems. Each of these systems deals with the essential economic questions in different ways and the decision-makers vary depending on the type of system.
What is Traditional, Command, Market and Mixed?
300
Five factors that influence decisions about the quantity of goods and services supplied in the marketplace.
What is Production Cost, Changes on Laws and Regulations, Environmental Changes, Technological Developments, and Psychology of the Owner.
300
The formula Actual GDP x [(unemployment rate – natural rate) x 2] / 100 is developed by whom and what does this formula determine
What is Arthur Okun is an economist in the 1960’s who developed a formula that can be used to assess the value of a country’s GDP gap.
300
Two types of poverty, one which mean complete destitution and one which is by comparing others in the nation
What is Absolute poverty and relative poverty Absolute poverty would involve a lack of the essentials of life: food, shelter, water and clothing. Most Canadians do have access to these fundamentals of life. However, there are a significant number of Canadians who struggle to live in the same manner and at the same standard as most Canadian households which is relative poverty
300
Organization that deals with the rules of trade between nations at a global or near-global leve
What is WTO – ( World Trade Organization) The organization consists of The 153 members and work together to help ensure that trade restrictions are minimal and that international trade is conducted in a fair and free manner. The organization advocates liberalized trading between nations around the world
400
Identify the two return laws, 1.) When the factory continues to add more workers but the overcrowded factory is unable to produce effectively 2.) When the factory is able to expand by building an addition, which in turn will create room for increasing numbers of workers and returns.
What is diminishing returns and increasing returns
400
Seven factors that influence decisions about the demand of goods and services supplied in the marketplace.
What is Price of Substitutes, Price of Complementary, Income of consumers, Tastes and Preferences, Demographics of consumers, Expectation of future price, and Expectation of future income,
400
Used to compare the rates of inflation from year to year.
What is Consumer Price Index – determines inflation by measuring the change in the cost of a fixed basket of goods
400
Polluted air, water systems, reductions in fish stocks, oil spills, traffic jams, greenhouse gasses, dumping of chemical and toxic waste are examples of…
What is Negative Externalities Economic concept of externality indicates that there are both positive and negative affects to our economic actions.
400
Four large Canadian multinational corporations
What is Alcan, Seagrams, Thomson Group, and GM 1.) Alcan - Canadian mining company and aluminum manufacturer. 2.) Seagrams - headquartered in Montreal, Quebec, Canada that was the largest distiller of alcoholic beverages in the world 3.) Thomson Group - one of the world's largest information companies 4.) GM – General Motors - the world's second-largest automaker
500
Economist born in Scotland who is known as the "father of modern economics". Most well known for the “invisible hand”.
Who is Adam Smith – his term the “invisible hand, describes the natural forces that guides free market capitalism through competition for scarce resources.
500
Formulas to determine the supply and demand elasticity
What is Supply Elasticity = % of change in the quantity supplied/ % of change in Price Demand Elasticity = % of change in the quantity demanded/ % of change in Price
500
Two methods the Canadian government uses to smooth out the fluctuations of the business cycle
What is automatic stabilizers and discretionary fiscal policies
500
English economist who studied the market forces of competition and the concepts of revenue and social costs. He came up with the concept of externalities along with a solution that involves taxing industries that cause pollution through their production methods and thereby, taxing the consumers who buy those goods or services.
Who is Cecil Pigou
500
The World Bank has classified the world's economies into three types based on their GDP
What is High Income or industrial, middle income or developing, and low income or less developed economies. - High-income or Industrial economies-the majority of the nation's citizens are prosperous, nations such as the USA, Canada, Australia, Japan, western Europe - Middle-income or Developing economies- many of the nation's citizens are able to provide a good life for themselves, nations such as Brazil, Russia, Eastern Europe, South America and the Middle East - Low-income or Less Developed economies- majority of the population live in acute poverty many of these nations were former colonies and healthy economic development did not occur as a result nations such as India, Haiti, Vietnam, Ethiopia