Scarcity and Types of Corporations

This set of flashcards covers key concepts related to scarcity, types of corporations, externalities, sustainability, and trade agreements as discussed in the lecture.

Scarcity

A situation in which resources are limited while human wants are unlimited.

Types of Corporations

Different forms of business organizations, including competitive and cooperative corporations.

Competitive Corporations

Businesses that aim to make profit, focusing on efficiency, productivity, and profitability.

Cooperative Corporations

Organizations owned and managed by their members to meet their needs rather than maximize profit.

Private Corporation

A business whose shares are held by a small number of private individuals and are not traded on public markets.

Public Corporation

A company that has issued shares through an initial public offering and is traded on at least one stock exchange.

Firm

A business organization, such as a corporation or partnership, that sells goods or services in pursuit of profit.

Opportunity Cost

The loss of potential gain from other alternatives when one (1) alternative is chosen.

The Three Economic Questions

Foundation of decision-making: What to produce? How to produce? For whom to produce?

Marginal Analysis

An examination of the additional benefits versus additional costs of an economic activity.

Market Economy

An economic system where production and prices are determined by decentralized decisions and private interests.

Command Economy

An economic system where the government or central authority determines production and prices.

Sustainability

Meeting the needs of the present without compromising the ability of future generations to meet their own needs.

Triple Bottom Line

A sustainability framework measuring results in three (3) areas: social responsibility, environmental impact, and economic profit.

Externalities

Side effects of production or consumption that affect third parties, which can be positive or negative.

Negative Externalities

Adverse effects on society resulting from production activities, such as pollution.

Positive Externalities

Benefits to society from production activities, such as cleaner air or public parks.

Internalizing Externalities

The process of shifting the social costs of an activity onto the producer or consumer to correct market failure.

Pigovian Taxes

Taxes imposed on activities that generate negative externalities, aimed at making firms pay the full social cost.

Indigenous Perspective on Scarcity

A worldview focused on stewardship and conservation for future generations rather than short-term individual accumulation.

Free Trade Agreements (FTAs)

Arrangements between countries that facilitate easier trade by reducing tariffs and regulations.

Tariffs

Taxes on imported goods that make foreign products more expensive to protect local businesses.

Canada's Largest Trading Partners

The primary nations Canada trades with, led by the United States, followed by China and Mexico.

CETA

The Comprehensive Economic and Trade Agreement between Canada and the European Union.

WTO

World Trade Organization, which sets rules for global trade and resolves trade disputes.

Subsidies

Government financial support to businesses to help lower costs and encourage competitiveness.