Gr11 Economics Exam Review

Analytical or positive economics

The branch of economics that deals with describing and explaining economic phenomena using objective analysis and facts.

Bond

A fixed-income investment representing a loan made by an investor to a borrower.

Business Cycle Model

A model that describes the fluctuations in economic activity, such as expansion and contraction phases like recessions.

Business Model

The plan implemented by a company to generate revenue and make a profit from operations, including types such as sole proprietorships.

Chequing Account

A bank account that allows easy access to funds for daily transactions.

Collectibles

Items valued and sought after by collectors due to their rarity, age, condition, or other unique characteristics.

Common stock

A type of equity security that represents ownership in a corporation and a claim on part of its profits.

Compounding

The process in which an asset's earnings are reinvested to generate additional earnings over time.

Cost Benefit Analysis

A systematic approach to estimating the strengths and weaknesses of alternatives used to determine options that provide the best approach to achieving benefits while preserving savings.

Credit

The trust which allows one party to provide resources to another party where the second party does not reimburse the first party immediately.

Economic questions: How is it going to be produced? What are we going to produce? Who receives how much?

Fundamental questions that address the allocation of resources and distribution of goods and services in an economy.

Economics

The social science that studies the production, distribution, and consumption of goods and services.

Economy

The system of production, distribution, and consumption of goods and services in a particular geographic region.

GDP equation and what each part of the equation means

GDP = C + I + G + (X - M), where C is consumption, I is investment, G is government spending, X is exports, and M is imports.

GIC

Guaranteed Investment Certificate, a Canadian investment that offers a guaranteed rate of return over a fixed period.

Interest

The cost of borrowing money, typically expressed as an annual percentage of the principal.

Mutual Fund

An investment vehicle that pools money from many investors to purchase securities.

Needs and wants

Needs are essential for survival, such as food and shelter, while wants are non-essential desires.

Normative or policy economics

The branch of economics that expresses value judgments about economic fairness and what the economy should be like or what particular policy actions should be recommended.

Opportunity cost

The value of the next best alternative foregone when making a decision.

Rate of return or yield

The gain or loss on an investment over a specified period, expressed as a percentage of the investment’s cost.

Real estate

Property consisting of land or buildings.

RESP

Registered Education Savings Plan, a Canadian savings plan used to fund a child's post-secondary education.

Risk

The potential for losing something of value, weighed against the potential to gain something of value.

RRIF

Registered Retirement Income Fund, a retirement fund used to withdraw income during retirement in Canada.

RRSP

Registered Retirement Savings Plan, a Canadian retirement savings plan with tax benefits.

Savings Account

A bank account that earns interest on deposited funds while providing security and liquidity.

Scarcity and scarce resources

The fundamental economic problem of having limited resources to meet unlimited wants.

TFSA

Tax-Free Savings Account, a Canadian account that provides tax benefits for saving.

Type of Economy (e.g. command, pure market)

Different economic systems, such as command economy where the government controls resources, and pure market economy where resources are controlled by private individuals.

Utility

The satisfaction or benefit derived from consuming a product or service.

Supply

The total amount of a specific good or service available to consumers.

Demand

The desire for a particular good or service backed by the ability and willingness to pay for it.

Quantity supplied

The amount of a good or service that producers are willing and able to sell at a given price.

Quantity demanded

The amount of a good or service that consumers are willing and able to purchase at a given price.

Law of supply

The principle that, all else equal, an increase in the price of a good will increase the quantity supplied.

Law of demand

The principle that, all else equal, an increase in the price of a good will decrease the quantity demanded.

Lorenz curve

A graphical representation of income or wealth distribution within a population.

Gini coefficient/score

A measure of income inequality within a population, ranging from 0 (perfect equality) to 1 (perfect inequality).

Income inequality

The unequal distribution of income within a population.

Poverty

The state of having insufficient financial resources to meet basic living expenses.

Union

An organization formed by workers to protect their rights and interests.

Unemployment

The state of being without a job despite being willing and able to work.

Underemployment

The condition of being employed in a job that does not fully utilize one’s skills, experience, or availability.

The market

A system or arena in which commercial dealings are conducted.

Price

The amount of money required to purchase a good or service.

Buyers and Sellers

Participants in a market who purchase (buyers) and offer (sellers) goods and services.

Other things being equal

A phrase used in economics to denote the effect of one variable while holding other relevant factors constant.

Demand schedule

A table that shows the quantity of a good that consumers will purchase at various prices.

Supply schedule

A table that shows the quantity of a good that producers will offer at various prices.