Economics

Scarcity

Limited resources versus unlimited wants, forcing choices.

3 Economic Questions

What to produce? How to produce it? For whom to produce?

Factors of Production

Land (natural resources), Labour (human effort), Capital (money, tools, machinery).

Economics

The study of how societies use scarce resources.

Capitalism (Market Economy)

An economic system characterized by private ownership, competition, and minimal government involvement.

Socialism / Communism (Planned Economy)

An economic system with more public ownership and government control over production and distribution.

Mixed Economy

An economic system that combines capitalism and socialism; example: Canada is more mixed, USA is more market.

Shift Left vs. Shift Right

Left means more government control; Right means less government control.

Supply & Demand Relationship

When demand increases and supply decreases, prices rise; when supply increases and demand decreases, prices drop.

Invisible Hand

A metaphor for how market forces naturally balance supply and demand.

Shortage

Occurs when demand is greater than supply.

Surplus

Occurs when supply is greater than demand.

Taxes

Funds used to finance public services.

Boycott

A refusal by consumers to buy a product for ethical or political reasons.

Fixed Prices

Prices controlled or set by the government.

Labour / Labour Union

An organized group of workers protecting rights through collective bargaining.

Winnipeg General Strike (1919)

A major strike aimed at better wages and workers' rights, influencing labor laws.

Private Ownership

Businesses and property owned by individuals or corporations.

Public Ownership

Property owned and run by the government.

Crown Corporation

A government-owned business, such as Canada Post or CBC.

Monopoly

A market structure where one producer controls the entire market.

Oligopoly

A market structure dominated by a few companies.

Competition Act

Legislation designed to prevent monopolies and encourage fair competition.

Advantages of Market Economy

Includes freedom, innovation, and efficiency.

Disadvantages of Market Economy

Includes inequality and a lack of public services.

Advantages of Planned Economy

Includes equality and meeting basic needs.

Disadvantages of Planned Economy

Includes less innovation and inefficiency.

Mixed Economy

An economic system that seeks to balance the advantages of both market and planned economies.