Unit #3 Living in an Industrialized Consumer Society

What does economy mean?

the running of a household

What is a budget?

A plan that helps you track and organize your income and expenses.

What are needs?

Things that are essential for survival

What are wants?

Things that aren’t essential

What does it mean to barter?

A direct exchange of goods or services for other goods or services without using money.

What is free enterprise or capitalizism?

The means of production and economic decisions are made by individuals.

What is government run enterprise?

The means of production and economic decisions are run by the government.

What is socialism?

The people own some of the means of production

What is a mixed economy?

An economic system that has elements of capitalism, socialism and government run enterprise.

What are wages?

Money paid to the employee by the employer in exchange for labour services

What are prices?

The amount of money needed in exchange for goods or services

What is supply?

How much of a good or service is available

What is demand?

How much people want the good or service

High prices -

low supply, high demand

Low prices -

high supply, low demand

What is the best situation for the consumer?

High supply, low demand

What is the best situation for the suppliers?

high supply, high demand

How are prices set?

Charge what the market will bear

What are currency rates?

The value of a specific currency based upon it’s demand and how good the country’s economy is.

Using currency rates what is the best situation for the consumer or purchaser?

When their home country’s currency is higher than other countries

What is revenue?

How much is coming in

What is expenditure?

How much is going out

Examples of the government’s sources of revenue?

Taxes, investment incomes and profit earnings from crown corporations

Examples of government expenditures?

Program expenses, interest on debt and transfer payments to people, provincial governments and organizations.

What is a surplus?

When the government has extra money after their commitments have been covered.

How do the government plan their budget?

They estimate how much they collect in revenue, and they plan how much they will spend based on the estimated revenue.

What is deficit?

When you spend more money than you make.

What is debt?

Borrowed money from a lender that needs to be repaid

How does the government get into a deficit position by accident?

An unforeseeable cost comes up and the government has to spend more than they collect so the economy goes bad, the dollar drops in value and people spend less which equals less revenue for the government.

How does he government enter a deficit position on purpose?

They enter a deficit on purpose when they know that the economy is going bad and they aren’t going to collect much in revenue. So they save money and borrow if they need too to slowly rebuild the economy and raise the value of their dollar

What is a consumer?

Someone who consumes

What do most consumers want?

Good price, ethics, quality, safety, guarantee, honesty and ecology

What is an ecological tax reform?

A strategy that lowers tax on good things like income and increases tax on bad things like pollution.

What are take-back laws?

Laws that require companies to recycle products after consumer use

What is durability?

The ability to last and remain functional

What is caveat emptor?

Let the buyer beware

What is a union?

An organization of workers joined together to improve the pay and working conditions of its members.

What is a craft union?

A group of workers within the same trade or craft

What is a professional union?

A group of workers within the same profession

What is an industrial union?

A group or association of workers within the same industry

What is a local union?

The basic unit of a union

What is collective bargaining?

Representing members or workers of an industry or trade while bargaining with employers for the best conditions for the members

What is a negotiation?

A bargaining process between two or more parties to reach a mutual agreement.

What are the four steps to negotiation?

Negotiate, Mediator, Work stoppage, and Settlement

What’s a mediator?

A neutral third party who is hired to help disputing sides

What is negotiating in bad faith?

When a person won’t back down

What is a lock out?

A work stoppage by the company owner implemented to try and apply pressure to the union to agree with the company owner.

What is a work stoppage or strike?

An organized refusal by employees to work designed to pressure employers to accept the demands of the employees.

What is scab labour?

Employees brought in from outside of the company in order to break a strike.

What are essential services?

Jobs or areas of society where unions aren’t allowed to strike ex. Doctors

What are obligations?

Things you need to meet in a budget

What is an arbitrator?

Like a mediator but with them the decision is final

What is stewardship?

How you take care of your money

What are your basic needs?

food, air, water, and clothing

What is profit?

Financial gain when a businesses total revenue exceeds its total expenses, costs and taxes.

What is currency?

A system of money that countries use to sell goods and services.

What is standard living?

How well you are able to meet your needs