Class 2, 3 and 4 - Canadian Capitalism

Flashcards covering key concepts related to Canadian capitalism and its assumptions, features, advantages, and disadvantages.

Capitalism

An economic system allowing private ownership of production means and decision making by individuals for profit.

Private Ownership

The legal right to own and use economic goods such as land and buildings.

Competition

When multiple sellers compete to provide goods and services to buyers.

Economic Freedom

The ability for businesses to operate with few restrictions and enter contracts freely.

Individualism

The concept that the individual is the primary decision-maker in society.

Profit Motive

The incentive for individuals and businesses to seek profit in their economic decisions.

Wage Labour

The employment of individuals in exchange for wages.

Consumer Sovereignty

The idea that consumers have power over producers based on their purchasing decisions.

Equality of Opportunity

The assumption that all individuals have an equal chance to succeed in society.

Work Ethic

A set of values emphasizing the importance of hard work and its moral benefit.

Role of Government

The government’s involvement in the economy to enforce laws and regulations.

Pros of Capitalism

Benefits of capitalism include choice, efficiency, quality, and innovation.

Cons of Capitalism

Disadvantages include wealth inequality, exploitation of labor, and market imperfections.

Crown Land

Land owned by the government, constituting approximately 89% of Canada's land.

Intellectual Property

Legal rights covering creations such as patents, copyrights, and trademarks.

Oligopoly

A market structure where a few firms dominate the market, leading to less competition.

Monopoly

A market structure where a single firm controls the entire market for a product.

Gender Wage Inequality

The disparity in earnings between men and women in the workforce.

Taxation

The process of collecting taxes, which can redistribute wealth within society.

Economic Inequality

The unequal distribution of income and opportunity among different groups in society.

Short-term Focus

An economic approach prioritizing immediate results over long-term sustainability.

Market Imperfections

Situations where market outcomes deviate from a competitive equilibrium.

Externalities

Economic side effects or consequences that affect third parties.

Economic Instability

Fluctuations in economic growth leading to unpredictable economic conditions.

Investment

The action of allocating resources, usually money, into assets with the expectation of generating profit.

Cultural Individualism

A cultural orientation where individuals prioritize their own goals over group goals.

Ethics of Profit

Debate about the morality of making profits in a capitalist economy.

Consumer Power

The influence consumers have over producers through their buying choices.

Government Intervention

Actions taken by the government to influence economic activity.

Laissez-faire

An economic philosophy of minimal government intervention in the economy.

Labor Exploitation

The act of treating workers unfairly to maximize profits.

Wealth Creation

The process of generating new wealth in an economy.

Economic Growth

An increase in the production of goods and services in an economy.

Tax Breaks

Reductions in the amount of tax an individual or business has to pay.

Regulation

Rules established by authorities to control how businesses operate.

Black Market

An illegal trade of goods and services that bypasses governmental regulations.

Consumer Awareness

Understanding consumer rights and knowledge about available products and services.

Decision Making

The process of making choices among different options available.

Burden of Proof

The obligation to prove one's assertion in a debate or legal case.

Civic Responsibility

The duty of citizens to contribute to the welfare of their society.

Access to Education

The ability for individuals to receive education and training opportunities.

Social Mobility

The ability for individuals or families to move up the social and economic ladder.

Market Economy

An economic system wherein productions and prices are guided by the interactions of citizens and businesses.

Protestant Work Ethic

The belief that hard work and diligence are a sign of a person’s faith.

Freedom of Contract

The legal right of individuals to enter agreements without restrictions.

Property Rights

Legal rights to possess, use, and transfer ownership of resources.

Labor Market

The supply and demand for labor, where employers hire and employees provide labor.

Economic Policy

Actions taken by a government to influence its economy.

Cultural Norms

Rules and expectations by which a society guides the actions of its members.

Profit Maximization

A process that firms use to determine the best output and price level.

Unemployment

The situation when individuals who are capable of working cannot find a job.

Innovation

The process of creating new ideas, products, or services.

Resource Allocation

The process of distributing resources among various projects or business units.

Gross Domestic Product (GDP)

The total value of goods produced and services provided in a country during one year.

Inflation

The rate at which the general level of prices for goods and services rises.

Supply and Demand

Economic model of price determination in a market.

Market Behavior

The actions of buyers and sellers in the marketplace.

Income Distribution

How a nation’s total economy is distributed among its population.

Corporate Governance

The system of rules, practices, and processes by which a company is directed and controlled.

Venture Capitalism

Funding provided to startups and small businesses with perceived long-term growth potential.

Consumer Protection

Laws and regulations designed to protect the rights of consumers.

Investment Risk

Potential financial loss or failure associated with a given investment.

Economic Disparity

The unequal distribution of wealth and resources in an economy.

Foreign Investment

Investment made by a company or individual in one country in business interests in another country.

Entrepreneurship

The process of starting and running one's own business.

Market Failure

A situation where the allocation of goods and services is not efficient.

Universal Basic Income

A model of social security in which all citizens receive a regular, unconditional sum of money.

Labor Union

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

Fiscal Policy

Government policy regarding taxation and spending to influence the economy.

Monetary Policy

The actions of a central bank to control the money supply and interest rates.

Tariff

A tax imposed on imported goods and services.

Trade Balance

The difference between a country's exports and imports.

Economic System

The structure by which a country or region organizes economic activity.

Market Regulation

Laws set by the government to regulate the marketplace.

Business Ethics

Moral principles that guide the way a business behaves.

Corporate Social Responsibility

A company's commitment to manage the social, environmental, and economic effects of its operations.

Wealth Distribution

The way wealth is divided among the members of a society.

Socioeconomic Status

Social standing or class of an individual or group often measured as a combination of education, income, and occupation.

Economic Opportunity

The chance for individuals to improve their economic status through participation in economic activities.

Community Development

Efforts that seek to improve the quality of life in a community.

Globalization

The process by which businesses or other organizations develop international influence.

Digital Economy

An economy that is based on digital computing technologies.

Service Economy

An economy based on the provision of services rather than manufacturing.

Supply Chain Management

The management of the flow of goods and services.

E-commerce

Buying and selling of goods or services using the internet.

Human Capital

The economic value of a worker's experience and skills.

Capital Markets

Markets for buying and selling equity and debt instruments.

Tax Havens

Countries or jurisdictions that offer low or no tax rates.

Public Goods

Goods that are non-excludable and non-rivalrous in consumption.

Investment Portfolio

A collection of assets owned by an individual or institution.

Price Mechanism

The process by which the forces of supply and demand interact to determine the price of goods and services.

Financial Literacy

The ability to understand and make informed decisions about financial matters.

Quantitative Easing

A monetary policy used to stimulate the economy by increasing the money supply.

Economic Resilience

The ability of an economy to recover from shocks.

Transparency

Openness and accountability in business practices.

Intangible Assets

Non-physical assets such as patents, trademarks, and goodwill.

Social Safety Net

A collection of services provided by the state to reduce economic insecurity.

Workforce Development

Educational, training, and employment services designed to improve workforce skills.

R&D Tax Credits

Tax incentives for businesses to invest in research and development activities.

Industry Standards

Established norms that set minimum acceptable criteria for products and services.