Business CH4

3 main economic systems

3 main economic systems

Pure command, Modern Mixed, Free market

3 major economic questions

What should be produced? How should it be produced? for whom should it be produced?

characteristics of free enterprise

private property rights, owner control and freedom of choice

If Canadians were not allowed to own property how would that affect the economy

crash the real estate market. cause unemployment. less investments. could ultimately regulate the housing prices

Mixed modern Economy Definition

combines Capitalism and Socialism. accepts private property and economic freedom but the government can interfere in economic activities

canada’s population:

40 million

Canada’s birth rate

10 in 1000 people

replacement birht rate

1.3 births perwoman

difference between private and public sector

private sector is profit-based ( tech, finance and pharmaceuticals) public is focused on public services ( education, healthcare and protection)

example of a public and private sector comapny:

Nike and the military or OPP

when did the public healthcare start and its success

started in 1984 has been pretty successful except for long waiting times and rising healthcare costs and employees shortage

air canada

established in 1937 and privatized in 1988 by the government. privatized to stimulate competition in the airline carriers market

how does a business affect a community

higher vacancy rate, stimulates economic growth, promotes diversity

what is a peak in a business cycle

period of increased commercial activity. toilet paper companies had a peak in 2020 due to the people buying it in great quantities

what is a contraction in a business cycle

a decline in economic out put. the great recession in 2008-09 would be an example

standard of living

the degree to which someone can afford necessities and other comforts and luxuries

quality of life

;level of enjoyment and comfort and health in someones life ( basic needs)

standard of living and quality of life relation to Maslow’s triangle

• Our material well being, resources to access basic needs. Health, education and a little fun contributes to overall happiness 

benefits of having a job:

• Intellectual challenge

• Friends

• Maintain positive self-identity and worth

• Provides a Sense of stability

• contribution to the public good