Economic Systems
In this economic system, the government owns and controls the means of production.
What is Socialism?
When supply and demand are in balance, this is the term for the price at which quantity demanded equals quantity supplied.
What is the equilibrium price?
This international organization sets and enforces the rules of trade between its member countries.
What is the World Trade Organization (WTO)?
In Canada, this is the central bank responsible for implementing monetary policy?
What is the Bank of Canada?
This is the federal agency in Canada responsible for creating and implementing fiscal policy, including the federal budget?
What is the Department of Finance?
This is the economic system in which prices are determined by supply and demand with little to no government intervention?
What is a Free Market Economy?
This law states that the quantity demanded of a good or service is inversely related to its price.
What is the law of demand?
This theory suggests that a country should specialize in producing goods it can produce most efficiently and then trade with others for their goods.
What is comparative advantage?
This term describes the purchase or sale of government securities by the central bank to influence the money supply.
What are open market operations?
This is the term for a situation where government spending exceeds revenue.
What is a fiscal deficit ?
In a mixed economy, these two sectors play a significant role in resource allocation?
What is the Public Sector and the Private Sector?
If the price of a substitute good increases, this typically happens to the demand for the original good.
What is a decrease in demand?
This is the term for a country exporting more goods than it imports.
What is a trade surplus?
This is the term for the value of one country's currency in terms of another country's currency, which is influenced by monetary policy?
What is an exchange rate?
The Canada Emergency Response Benefit (CERB) was a notable fiscal policy response to this major event in 2020-2021?
What is the Covid-19 Pandemic?
This is the economic system characterized by a lack of private property and central planning of the economy?
What is Communism?
When the price of a good decreases, this happens to consumer surplus.
What is it increases?
This is the economic term for a situation where a country can produce a good at a lower opportunity cost than its trading partners.
What is absolute advantage?
This person is responsible for making decisions on the direction of monetary policy in Canada?
Who is the Governor of the Bank of Canada (Tiff Macklem)?
These are the two main tools of fiscal policy that the government can use to influence the economy.
What are government spending and taxation?
This country is often cited as a prime example of a command economy during the 20th century?
What is the Soviet Union?
This is the term for the maximum price set by the government above which a good or service cannot be sold legally?
What is a price ceiling?
This term describes a policy in which a country deliberately raises trade barriers to protect its domestic industries from foreign competition.
What is protectionism?
When the central bank decreases the money supply by selling government securities, this is the likely effect on interest rates.
What is an increase in interest rates?
This is the term for the economic theory that suggests that government should increase spending during economic downturns to stimulate demand?
What is Keynesian economics?