Demand
Define law of demand.
As the price of a product or service goes down, demand goes up, and vice versa.
Define law of supply.
As the price goes up, the supply goes up, and vice versa.
Price control for perfect competition.
They are price takers.
Teachers, bankers and lawyers are examples of which sector?
Services sector.
Define a corporation.
A separate legal entity from its owners (shareholders).
Explain how income impacts demand.
Higher income means more discretionary buying power, which increases demand for goods and services.
Price shifts the supply curve - true or false?
False because price exists as a variable.
Product type of oligopoly market structure.
Can be identical or differentiated.
Type of employment in the manufacturing sector.
Skilled workers - engineers, designers, electricians, etc.
Unskilled workers - warehouse pickers, janitors, drivers, etc.
Explain what the easiest and cheapest for-profit business to set up is.
Sole proprietorship because of simple paperwork, low costs and only one owner.
Two specific events affecting demand.
Pandemics, technological advancements, holidays, consumer trends.
Three price factors that impact supply.
Technology
Creating a market
Increasing the overall sales of the company
Explain if monopoly has high or low barrier to entry.
High barrier to entry often because of government regulation or control of resources.
Explain why Canada's primary sector is so large.
Canada is known for its large land mass and array of natural resources.
The main advantage of incorporation.
Owners are not personally responsible for the business' debts.
Three reasons for law of demand.
Substitution Effect
Income Effect
Law of Diminishing Marginal Utility
Explain if the supply curve has a positive or negative relationship between price and quantity.
Positive relationship because of profit - the higher the price, the more people want to produce.
Rogers, Bell and Telus are examples of:
Oligopoly market structure.
Explain the new knowledge economy.
An economy encompassing high-tech businesses using science, technology, and information within jobs.
Define "going public."
A corporation offering its shares for sale on stock exchange for the first time.
Five shifters of demand.
Preferences
Number of Buyers
Price of related goods
Income
Expectations
Five shifters of supply.
Price of resources
Technology
Government involvement
Number of Sellers
Expectations
Market outcome of monopolistic competition.
Firms compete based on brand loyalty where prices are high.
The services sector makes up about __% of the gross domestic product in Canada.
70%.
Explain how profits are shared in a partnership.
Profits may be split equally or according to roles based on the partnership agreement made.