Ch.2 Understanding Canadian Business: Economics and Business

Flashcards covering key concepts in economics as related to Canadian business.

Economics

The study of how society chooses to employ resources to produce goods and services and distribute them for consumption among various groups and individuals.

Macroeconomics

The branch of economics that looks at the operation of a nation's economy as a whole.

Microeconomics

The branch of economics that examines the behavior of individuals and organizations in particular markets.

Gross Domestic Product (GDP)

The total goods and services produced by the economy, used to measure economic performance.

Unemployment Rate

The percentage of the labor force that actively seeks work but is unable to find work at a given time.

Inflation

A general rise in the prices of goods and services over time.

Supply

The quantity of products that manufacturers are willing to sell at different prices at a specific time.

Demand

The quantity of products that people are willing to buy at different prices at a specific time.

Equilibrium Point

The price where the quantity supplied meets the quantity demanded.

Perfect Competition

A market structure where many sellers exist, none of which can dictate the price of a product.

Monopolistic Competition

A market structure where many sellers offer similar but differentiated products.

Oligopoly

A market structure characterized by a few sellers dominating the market.

Monopoly

A market structure where one seller dominates the market, holding significant market power.

Modern Mixed Economy

An economic system that combines characteristics of both market and command economies.

Frictional Unemployment

Unemployment that occurs when people quit work to find a job they prefer or are entering the labor force for the first time.

Structural Unemployment

Unemployment caused by a mismatch between available skills in the workforce and those required by employers.

Cyclical Unemployment

Unemployment that occurs during economic downturns or recessions.

Seasonal Unemployment

Unemployment that occurs when demand for labor varies throughout the year.

Consumer Price Index (CPI)

An index that measures the effects of inflation by tracking changes in the prices of a basket of consumer goods.

Economic Growth

An increase in the output of goods and services in an economy over time.

Ecological Sustainability

Minimizing environmental harm while allowing for economic growth.

Market Economy

An economy based on the private ownership of economic resources and the use of markets to make economic decisions.

Command Economy

An economic system where all production property is owned by the government, and market forces are replaced by central planning.

Traditional Economy

An economic system that relies on customs and traditions to make economic decisions.

Economic Indicators

Statistics that provide information about the economic performance and health of a country.