Economics and Consumerism 9

What is economics?

the study of production, distribution, and consumption of goods and services (usually anything involving money)

What are the 3 factors of production?

3 key elements needed to produce goods and services

• Land (natural resources)

• Labour (people doing the work)

• Capital (tools to produce goods, services, and any extra currency

What is privately owned?

when something is owned and controlled by corporations and individuals

• basically government doesn’t own it

What is publicly owned?

when something is owned and controlled by government and is partially paid by taxes

• calgary transit, health services

What is consumerism?

the idea that people consuming more and more is beneficial to society

What are the 2 main things governments have to balance the economy?

Social programs

• programs and supports that the government provides to citizens

  • healthcare, public education, police, justice system

Taxation

• money collected using various mechanisms from residents

What are the economic cycles?

4 periods of economic cycles

Recover/Expansion

• economy is speeding up it’s growth

Prosperity

• the economy is at its peak, growth is consistent

Recessions

• economy slowing down

Depressions

• economy is failing to grow

What is gross?

the total

What are producers?

people who are producing goods and services

What are consumers?

people who are consuming/using foods and services

What is scarcity?

fundamental idea that the supply of things that people need and want is limited, even though their wants and needs are limitless

What is the economic spectrum?

a way to compare different economic systems and beliefs

• left side: more government involvement/more public

• right side: less government involvement/more private

What are crown corporations?

a publicly owned organization that operates more like a business

• ex. canada post

• sells goods or services

What is a shift left?

increased government involvement in economy

• ex. new law, setting a standard price

What is shift right?

less government involvement in economy

• ex. removing laws, allowing market to decide wages

What is the public good?

what’s good for society as a whole

What is a planned economy?

full government control

• government makes all economic decisions

• shift left

What is mixed economy?

some government control

• a blend of free market and government involvement (when needed)

• the middle.

What is a market economy?

minimal government control

• more private companies

• decisions dependent on supply and demand

• shift right

What is inflation?

the gradual rise of prices in an economy over time

• because of overall growth of demand

What are the 3 types of inflation?

Hyperinflation

• fast-rising, intense inflation

Deflation

• prices lowering overtime

Stagflation

• inflation happening quickly, but economy not growing

What is amartization?

the process of paying for something over a long period of time

• ex. mortgage , car loan

What is interest?

the fees paid by a purchaser to a lender during a loan

• usually calculated by a percent of the loan

What is standard living?

the degree of wealth and material comfort available to a person or community

What are some factors of standard living?

• income

• poverty

• climate

• infrastructure

• employment

• prices

• life expectancy

What is quality of life?

the degree to which an individual is healthy, comfortable, and able to enjoy life events

• it’s subjective (every person has a different view of good quality of life)

What is materialism?

the idea that physical or material possessions lead to happiness

What are the 9 factors that influence why and what people consume?

• price

• safety

• quality

• identifying with a grouo

• supporting jobs

• protecting the environment

• accessibility

• marketing

• health

What is a boycott?

when consumers refuse to buy a product to encourage some kind of change

What are 4 ways to measure quality of a lifestyle, group, or country?

• GDP

• HDI

• Quality of life

• Standard of living

What is GDP?

Gross-Domestic Product

• monetary measurement of all the goods and services produced in a country or area

  • GDP per capita is the same measurement but per person

What is HDI?

Human Development Index

• a calculation of how developed a country is based on education, health, safety, rights, income, etc.

What is profit motive?

producers motivation to maximize their profits

• seen in privately owned companies

What is supply?

the products and services available from producers

What is demand?

how much consumers need the product or services

What is equilibrium?

the best price for a product so that supply and demand match up

What is collective bargaining?

the process where workers as a group negotiate with employers about pay, conditions, and benefits

What are strikes?

when workers stop working on purpose to protest or demand better pay or conditions

What is competition?

when businesses try to attract the same customers by offering better prices, products, or services

What is monopoly?

when one company completely controls the supply of a product or service, with little or no competition

• due to the store being the only accessible store for consumers

What is unemployment rate?

the percentage of people in the workforce who are able and willing to work but cannot find a job

What are labor unions?

organizations that represent workers to protect their rights, improve wages, and ensure safe working conditions