Economic Systems and Their Impact on Quality of Life

economics

the study of the production, distribution and consumption of goods and services

economic system

the way a society organizes the production, distribution and consumption of goods and services

economy

the resources and processes involved in the production, distribution and consumption of goods and services

scarcity

in economics, the idea that land (materials), labour and capital (money) limit the supply of what people want and need

mixed economy

an economic system that combines elements of both capitalism and socialism

market economy

an economic system where decisions regarding investment, production, and distribution are based on supply and demand

supply and demand

the relationship between the amount of product and the desire for that product

competition

the rivalry among sellers to attract customers while lowering costs

quality of life

the standard of health, comfort, and happiness experienced by an individual or group

economic decision making

the process of making choices about how to allocate resources

resources

the money, labour, and materials to supply what people want and need

values

the principles and beliefs that shape economic systems

manufacturing

the process of converting raw materials into finished goods

shipping costs

the expenses incurred in transporting goods from one location to another

consumer

a person who purchases goods and services for personal use

allocation of resources

the process of distributing resources among various projects or business units

economic principles

the fundamental concepts that guide economic decision making

environmental impact

the effect that a company's actions have on the environment

product variety

the range of different products available to consumers

price determination

the process by which the price of a product is established

income

money received, especially on a regular basis, for work or through investments

taxes

mandatory financial charges imposed by a government on individuals and businesses

economic partners

countries or entities that engage in trade and economic cooperation

decision-making factors

the elements considered when making choices about spending and resource allocation

Scarcity

The idea that resources are limited.

Factors of Production

The three basic elements that interact to limit the supply of what people need and want: land, labour, and capital.

Land

All the materials found in the natural environment needed to produce goods and services, including renewable resources (e.g., trees, raspberries) and non-renewable resources (e.g., oil, gold).

Labour

The physical and mental effort needed to produce goods and services, such as agricultural workers and servers.

Capital

The money that people own or borrow, used to purchase equipment, tools, and other resources to produce goods and services.

Economic System

A way to solve the basic problem of scarcity, organized based on different ideas about how best to manage an economy.

Privately Owned

The part of the economy owned and controlled by businesses and individuals.

Publicly Owned

The part of the economy owned and controlled by government and paid for by taxes.

Mixed Economy

An economic system that combines private ownership and government control, where some resources are publicly owned and some are privately owned.

Planned Economy

An economic system where the government makes all decisions about how to solve scarcity and owns and manages the resources needed to produce goods.

Market Economy

An economic system where the choices of individuals solve scarcity, with private businesses owning and managing resources.

Government Involvement

The level of participation by the government in the economy, which can vary based on the political party in power.

Economic Continuum

A spectrum that shows the varying degrees of government involvement in an economy, ranging from planned economies to market economies.

Quality of Life

The general well-being of individuals and societies, often affected by economic decisions.

Trade Agreements

Contracts between countries that determine the rules of trade between them, which can impact the supply of goods.

Growing Season

The period of the year during which conditions are suitable for plant growth, affecting the availability of fresh produce.

Economic Decision Making

The process of making choices regarding the allocation of resources to meet needs and wants.

Resource Allocation

The distribution of resources among various uses, which is influenced by economic systems and decision-making.

Political Party Influence

The impact that the ruling political party has on the economic system and government involvement in the economy.

Consumer Choices

Decisions made by individuals regarding what to buy, which influence business success and resource allocation.

Economic Values

The beliefs and principles that guide how an economy is organized and managed.

Impact of Land Use Decisions

The potential consequences that decisions about land use can have on the environment and resource availability.

Workforce Choices

Decisions regarding jobs and employment that affect the availability and qualifications of workers.

Investment Decisions

Choices made regarding where to allocate capital, which can significantly impact various sectors of the economy.

Public Good

What's best for society as a whole.

Cooperation

The idea that individuals must consider each other and set aside their individual interests to achieve what's best for society.

Individualism

The belief that what's best for each person individually adds up to what's best for society.

Founding Principle of Canada

Peace, order and good government.

Mixed Economy

An economic system where government plays a significant role while individuals still own private property.

Shift Left

A shift on the economic continuum towards more government involvement in the economy, usually described as taking a more liberal position.

Shift Right

A shift on the economic continuum towards less government involvement in the economy, usually described as taking a more conservative position.

1963-1968 Shift Left Example

During Lester Pearson's prime ministership, the government increased its role in the economy with publicly funded health care and pensions for senior citizens.

1984-1993 Shift Right Example

Under Brian Mulroney's leadership, the government reduced its involvement in the economy by cutting spending, privatizing Crown corporations, and signing NAFTA.

Crown Corporation

A government-owned corporation in Canada.

Economic Decision Making

The process by which individuals and government make choices about how to use resources.

Influence of Individual Consumers

Individual consumers drive economic decision making by choosing what to buy, although they have little influence overall.

Canadian Economic History

The historical development of Canada's economy, influenced by its founding principles and political decisions.

U.S. Economic History

The historical development of the U.S. economy, which has similarities and differences compared to Canada.

Political Party Influence

Canada's position on the economic continuum shifts depending on the political party in power.

Liberal Party of Canada

The political party that supported increased government involvement in the economy during Pearson's prime ministership.

Progressive Conservative Party of Canada

The political party that reduced government involvement in the economy during Mulroney's prime ministership.

Economic Continuum

A spectrum that represents the level of government involvement in the economy.

Quality of Life

The general well-being of individuals and societies, often influenced by economic systems.

Values

The beliefs and principles that guide individuals and societies in making decisions.

Attitudes

The settled ways of thinking or feeling about something, often influenced by historical context.

Public Policy

The principles on which social laws are based, often reflecting the values of a society.

Economic Systems

The means by which countries and governments distribute resources and trade goods and services.

Crown corporation

A company owned by Canada's government to provide products and services to Canadians.

Reasons for Crown corporations

To provide essential services, promote economic development, and support Canadian culture and identity.

Mixed economy

An economic system that includes both private and public enterprises, partly because of its Crown corporations.

Air Canada

Originally Trans-Canada Airlines, established by Canada's parliament in 1936 and privatized in 1988.

Petro-Canada

Established by Canada's parliament in 1975 to compete with foreign-owned companies in developing Canada's oil and gas resources.

CBC/Radio-Canada

Canada's public broadcaster created to promote bilingualism and Canadian culture.

Market economy

An economic system where consumer choices drive all economic decision making.

Mixed economy vs Market economy

Mixed economies allow consumer choices to drive a lot of economic decision making, while market economies rely entirely on consumer choices.

Supply and demand

The basic principles that connect consumers' wants and needs with the products and services created by producers.

Consumers

Those who use products and services.

Demand

The wants and needs of consumers for products and services.

Producers

Those who create products and services.

Supply

The products and services created by producers.

Equilibrium

A state where the supply of a product can meet the demand for that product at a particular price.

Economic continuum

A spectrum that categorizes different economic systems based on their characteristics.

Pemex

Mexico's government-owned oil company, established in 1938.

Planned economy

An economic system where the government makes all economic decisions.

Economic systems

The ways in which countries organize their economies, including market and mixed economies.

Quality of life

The general well-being of individuals and societies, affected by supply and demand.

Price

The amount of money required to purchase a product or service, influenced by supply and demand.

Availability

The degree to which products and services are accessible to consumers.

Jobs

Employment opportunities connected to creating products.

Economic decisions

Choices made by individuals and governments regarding the allocation of resources.

Competition

The rivalry among producers to attract consumers and increase sales.

Equilibrium

In a state of equilibrium, the supply of a product can meet the demand for a product at a particular price.

Supply

The availability of a product that producers are willing to sell at a given price.

Demand

The desire of consumers to purchase a product at a given price.

Price

The amount of money required to purchase a product.

Effect of Increased Demand

When demand for a product goes up, it means more consumers are buying the product, driving up the price.