Studied by 40 people
Scarcity
Basic factor that creates an economic system
Shortage must be handled properly to keep society balanced
People's wants exceed availability
Government tries to balance limited resources
Satisfying unlimited wants with limited resources
Addressing scarcity
What - is wanted or needed
How - will it be produced
Who - will get it
How are people’s needs are supplied
Land
Labour
Capital
Land
Materials found the in natural environment
Renewable (can be replaced fully) and non-renewable (exist in limited quantities and never replaced)
Labour
Physical and mental effort needed to produce goods and services
Capital
Money people own or borrow used to buy equipment, tools, or other resources to make goods and services
Economic system
Solve the basic problem of scarcity
Different ideas about how to organize an economy makes different economic systems
Organized by a continuum based on values of society and the government
Ownership
Publicly owned – controlled by government and paid by taxpayers
Privately owned – controlled by businesses and individuals
Centrally planned economy
Resources are publicly owned
Government makes decisions on how to use resources
Consumers have little influence on economy
Far left
Prices set by government
Market/free economy
Everything is privately owned
Individuals make decisions on how to use resources
Consumers drive economic decisions depending on what’s being bought
Mixed economy
Mix of publicly and privately owned businesses
Individuals and government both make decisions on what to produce
Both have influence on economic decision making
Crown corporation
Company owned by the Canadian government to provide goods and services
Provides essential services
Promotes economic development
Support Canadian culture and identity
Creates jobs to support economy and culture through taxpayers' money
Public good
What is best for the interest for all of society
Many people disagree due to different perspectives
Consumer
Buys product or service
Producer
Provides product or service
Good
The thing being produced or manufactured
Service
Doing something for you
Might not be an object
Supply
How much of a product or service there is
Producer willing to produce something at a certain price
Demand
How much consumers want a product or service and how their willing to pay for it
How much the product can be sold at for that price
Equilibrium
Supply and demand are equal
Supply and demand
Cause-and-effect relationship
Competition
Rivalry among different producers to sell the most products
Monopoly
They are rare because they need government support
Do not need to be competitive in price
Government funds the money they lose
Prices regulated by government
Ex: Canada post (crown corporation)
Government intervention in market economy
To keep people safe
Collect taxes for common good (ex: healthcare)
Impose laws for fair competition, making base a price
Founding principle
Canada: “Peace, order and good government”
America: “Life, liberty, and the pursuit of happiness”
Government interventions in economies
Healthcare
Social programs
Ownership
Economic protection
Competition laws
Consumer safety initiatives
Jobs and our economy
Economic decisions impacts job availability
Supply and demand can affect job availability, making opportunities or challenges
Labour unions
Organization of wage earners (workers)
Makes wages reasonable and makes workplace safe
Can lobby (fight/convince for legislation) the government
Government can make favorable or unfavorable laws for unions
Can pressure employers about wages, hours, workplace safety
Strikes form pressure, they can refuse to do their job
Extreme cases, small strike can turn to general strike
Paying some wage towards union to help you out
Collective bargaining
Negotiating as a group.
It is the key right established by workers unions for workers
Charter of rights and freedom protects collective bargaining
Note 
Flashcard (72)