Canadian Capitalism in GMGT 1010

A comprehensive set of flashcards covering key concepts of Canadian capitalism as discussed in GMGT 1010 including terms, definitions, and critical questions related to the economic system.

What is capitalism?

An economic system that allows for private ownership of the means of production, focusing on profit.

Three central features of capitalism

Private ownership of the means of production, Wage Labour, Production for exchange and profit.

What are the key assumptions of capitalism?

Private property, Equality of opportunity, Competition, Individualism, Economic freedom, Profits, Work ethic, Consumer sovereignty, Role of government.

Private Property

The legal right to own and use economic goods such as land and buildings.

Ethical implications of private property

Uneven distribution of wealth, use of taxation to redistribute wealth, intellectual property.

What percentage of Canada's land is Crown land?

Approximately 89%.

Thoughts on private property

Ownership vs. Leaseholds, evolution of property rights, Indigenous land systems.

Property Rights Worldwide 2024 IPRI

International Property Rights Index measuring property rights across countries.

Who is Martin Shkreli?

An American businessman known as 'Pharma Bro'.

Individualism

The individual as the paramount decision maker, assumed to be decent and rational.

Hofstede’s Cultural Dimensions

Framework analyzing cultural differences, including Individualism vs. Collectivism.

How is economic freedom measured?

Through factors like property rights, taxation, government intervention, regulations, and corruption.

Invisible Hand

A concept by Adam Smith where self-interest drives social benefit in a free market.

Examples of profitable industries in Canada

Commercial Banking, Apartment Rental, Petroleum Refining, among others.

Work ethic

A code of values claiming that work is desirable and a natural activity.

Consumer sovereignty

The power consumers hold in influencing producers through purchasing decisions.

Role of government in capitalism

Minimal government intervention, enforcing contracts and maintaining market rules.

Pros of capitalism

Choice, Efficiency, Quality, Innovation, Wealth Creation.

Cons of capitalism

Wealth Inequality, Short-term Focus, Market Imperfections, Exploitation of Labour.

Short-term focus in capitalism

Emphasis on immediate profits over long-term sustainability.

Wealth inequality

Disparities in wealth distribution among individuals or groups.

Importance of competition in capitalism

Rival sellers providing goods and services to many buyers.

Profit motive

The drive to maximize profits, often influencing business decisions.

Work ethic according to Protestant ethics

Hard work and diligence are valued for religious reasons, reflecting God’s will.

Consumer manipulation

Consumers may not always be aware of alternatives or be influenced by advertising.

Role of government in economic intervention

To support or regulate markets to ensure fair competition.

Economic growth

Increase in the production of goods and services in an economy.

Equality of opportunity vs outcomes

The difference between providing equal chances vs achieving equal results.

Gender wage gap in Canada

Women earned approximately 87¢ for every $1 earned by men in 2024.

Indigenous land systems

Traditional land ownership structures as understood by Indigenous Peoples.

Market imperfections

Failures in a market that prevent optimal allocation of resources.

What is the subscription economy?

A business model where customers pay a recurring price at regular intervals.

Gig economy

A labor market characterized by short-term contracts or freelance work.

Ethics of profit maximization

The moral implications of prioritizing profit over social good.

Barriers to competition

Factors that prevent new firms from entering an industry.

Great Gatsby Curve

A concept linking inequality and social mobility.

Digital divide

The gap between those who have easy access to computers and the internet and those who do not.

Inflation control

Government policies aimed at maintaining the currency's value.

Roles of firms in capitalist economies

To innovate, compete, and provide goods and services to consumers.

International exchange implications

No restrictions on goods, services, or money movement between nations.

Foreign investment in capitalism

Investments made by individuals or entities in foreign countries.

Consumer preferences

Choices made by consumers influenced by marketing and advertising.

Competition and monopolies

The risk that few firms dominate market shares, harming competition.

Crown land ownership in Canada

Legal ownership of land owned by the monarchy.

What is exploitation of labor?

When workers are paid less than the value they provide.

Examples of externalities

Unintended consequences of economic activities affecting others.

Economic instability

Fluctuations in economic performance that can lead to downturns.

Adaptability in capitalism

The ability of businesses to change in response to market conditions.

Wage and price controls

Regulations that affect the pay workers receive and prices consumers pay.

Consumer rights in capitalism

The protections and guarantees provided to consumers buying goods and services.

Taxation's impact on economy

Tax levels can affect business decisions and economic behavior.

Role of technology in capitalism

Influences on productivity and market dynamics.

Cultural dimensions of capitalism

How national cultures can shape economic systems.

Poverty and capitalism

The relationship between economic systems and poverty levels.

Protestant work ethic

The belief that diligent work is a virtue and a sign of moral worth.

Social implications of wealth inequality

Effects of unequal wealth on societal stability and cohesion.

Understanding consumer rights

Awareness of what consumers are entitled to in a capitalist market.

What is a monopoly?

A market structure where a single seller controls the entire market.

Market signals

Data that indicate how to allocate resources effectively in an economy.

Freedom to enter/exit market

The ability of businesses and individuals to engage freely in economic activities.

What are externalities?

Costs or benefits that affect third parties not involved in economic transactions.

Wage labor

A system where individuals earn wages by selling their labor.

Commercial Banking in Canada

Industry focused on providing financial services to individuals and businesses.

Role of education in capitalism

Education and skill development are critical for economic participation.

What is intellectual property?

Legal rights granting the creator control over the use of their creations.

What is the significance of consumer sovereignty?

It empowers consumers to influence the products available in the market.

Wealth creation in capitalism

The ability of a system to generate financial resources.

What is social mobility?

The movement of individuals or families within a social hierarchy.

What are public goods?

Goods that are available to all without rivalry and excludability.

Influence of advertising on consumer choices

Marketing strategies that shape consumer preferences and desires.

Impact of competition on prices

Increased competition typically results in lower prices for consumers.

Canada's wage gap by province

Variations in average wages for men and women across Canadian provinces.

Is capitalism ethical?

Debate surrounding the moral standing of capitalist systems.

What’s the purpose of taxation?

To fund government services and redistribute wealth.

Coping with economic recession

Strategies for businesses to survive downturns in the economy.

What is a free market?

An economic system with minimal government intervention.

Long-term economic planning

Strategies aimed at sustainability and future economic growth.

Entrepreneurship and capitalism

The role of innovators in creating new businesses and driving growth.

Capitalist versus socialist systems

Comparison of economic systems based on ownership and control of resources.

Effects of globalization on capitalism

How interconnected markets influence economic systems worldwide.

Supply and demand principles

The foundation of market economies dictating prices and availability.

Impact of technology on labor markets

How advancements change job availability and types of work.

Barriers to entrepreneurship

Obstacles that prevent new businesses from being established.

Economic policies in capitalism

Government decisions that affect economic trends and practices.

What defines a successful capitalist economy?

High levels of innovation, growth, and consumer satisfaction.

Role of regulations in capitalism

Rules designed to protect consumers and ensure fair competition.

Economic indicators for capitalism

Metrics that assess the health of an economy.

Job creation in capitalist economies

The ability of businesses to generate employment opportunities.

What is social welfare?

Programs aimed at helping those in economic need.

Producers' power over consumers

Influence that suppliers have in shaping market offerings.

Economic contributions of the service sector

Impact of services in driving economic activity and growth.

Benefits of innovation in capitalism

Improvement of products and services leading to economic growth.

How does capitalism influence societal values?

It shapes notions of success, work ethic, and consumer behavior.

What is wealth redistribution?

The reallocation of wealth through taxation and social programs.

Ethics of entrepreneurship

Moral questions surrounding the responsibilities of business owners.

What are capital markets?

Financial markets allowing for the buying and selling of securities.

Economic resilience in capitalism

Ability to withstand and recover from economic shocks.

Why is competition vital in capitalism?

It fosters innovation, keeps prices low, and improves quality.

Economic growth limits

Constraints that prevent sustainable expansion of economies.

Economic stability indicators

Signs of a robust and well-functioning economy.